I’m about to open my first brokerage account. I’m very new to personal finance so wanted to get some opinions.
With the market taking a down turn, what strategy would be best to invest all of my cash savings (minus emergency funds)?
I have around $250k saved up. I was thinking of initially opening my brokerage account with $50k now, and then invest an additional $20k monthly for the next 10 months.
Thoughts? What would you do?
TC: $300K
YOE: 2.5
#personalfinance #investments
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comments
Unknowingly you outsmarted most of the people who started investing in the last 2 years.
https://www.cnbc.com/2021/08/12/which-investment-strategy-is-better-lump-sum-or-dollar-cost-averaging.html
You could also do a non US fund. I used to have a China fund but it only lost and I decided to get rid of it. I think that was a good call. Some people here can recommend some diversified funds.
My point is that I would just keep things simple.
Observe for a bit before you put a significant chunk, but do put some so you feel some pain. That’s the training you need to undergo and learn to stomach losses.
A way of doing it is to determine when you want to buy the house, then according to the market volatility that you see, you determine a period during which you will be selling a constant amount of shares per period (every day, for example). Then execute on that. You may want to know what to do on a great day (maybe sell more), etc.
It just means having a plan. And the earlier you plan, you have more time to average the volatility.
Noob question: what is a pullback? The market trending down?