Strategy to buy the dip

Google / Eng
Careers

Go to company page Google Eng

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5d 66 Comments

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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TOP 66 Comments
  • Google / Eng
    Wheeie

    Go to company page Google Eng

    Wheeie
    You’ve been hoarding cash for 2.5 years?

    Unknowingly you outsmarted most of the people who started investing in the last 2 years.
    5d 9
  • Snap / Eng
    👻 SnapBoi

    Go to company page Snap Eng

    👻 SnapBoi
    Strategy: don’t invest all of your cash savings. Keep something. And do use dollar cost averaging for what you do invest. Do SPY for example. Keep it simple initially and get used to win and lose, find your fear zone. Keep adding money constantly.
    5d 3
    • Snap / Eng
      👻 SnapBoi

      Go to company page Snap Eng

      👻 SnapBoi
      I invested in a Blue Chip fund. Turns out initially made me win, now I’m suffering. SPU is more stable. If I had to start again I would keep it simple and do all SPY. It’s already diversified by pros.

      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.
      5d
    • Qqq has been a recent complement to SP500 for me. QQQ tracks the Nasdaq 100, and in the long run has had a significantly higher return that the sp500
      4d
  • Try building 3 fund portfolio, in long term (5+ years) you will win most(95%+) individual stock pickers. Don’t know your situation but plan to buy home(best way to diversify and fight inflation).
    5d 5
    • Snap / Eng
      👻 SnapBoi

      Go to company page Snap Eng

      👻 SnapBoi
      Exit strategy is a way to liquidate your investment in order to achieve your goal, in this example, buying a house.

      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.
      5d
    • Google / Eng
      Careers

      Go to company page Google Eng

      Careers
      OP
      Thanks for the great explanations!
      4d
  • Samsung
    UiYx76

    Go to company page Samsung

    UiYx76
    Wow..need ur guidance...2.5 years of Experience and u have 250k cash.. why are you asking others
    5d 5
    • Amazon
      laalo

      Go to company page Amazon

      laalo
      I also got a fixed amount which I use for trading on equities using TA and fidelity reports for fundamentals. I follows sell principles of William O Neil but buy writes using simple TA/Fundamentals. This account is only for fun but provides additional income.
      5d
    • Samsung
      UiYx76

      Go to company page Samsung

      UiYx76
      Defintely you are young, so you can diversity in stocks, mutual fund, crypto, real estate..its good time to enter but start slow..lot of turbulence..fidelity is 👍
      5d
  • OP get VTI, and/or VOO. Your DCA strategy is smart. Just know you’re going to see that value drop for a while as there’s a pullback happening but your future self will thank you.
    5d 2