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S & P 500

5 Posts
3 Users
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Posts: 16
Topic starter
(@janey12)
Eminent Member
Joined: 3 years ago

Hi I am wondering if I have not bought into the S & P 500 yet, would it be better to wait until it drops a bit.  I think now is not a good time to just enter when it is shooting though the roof.  Any thoughts would be helpful.  I thought I would wait until it drops and then buy some VTSAX, etc.... Not right now.  My soon to be ex-husband is making me feel like a real jerk saying that I should have bought in...yes I know but what past is past and now I think I should wait until it goes down.  I read something that it may go to 8000.  How realistic is that.  Any help is really really appreciated.

4 Replies
Posts: 194
(@navypack)
Reputable Member
Joined: 3 years ago

History would say just add it all now.  However, I think psychologically the answer is 30% now and then add 10% every other month.

Look up some videos or articles on investing every year at the worst time (year high).  Turns out alright!

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3 Replies
(@earlyretirementnowcom)
Joined: 8 years ago

Member
Posts: 349
(@navypack)
Joined: 3 years ago

Reputable Member
Posts: 194

@earlyretirementnowcom very good track back to the logical approach, which I agree with!

However just listened to The Psychology of Money, and the author brought up a good point about rationale versus realistic.  I think giving up a little gain by DCA is worth it to get people IN the market safely.  

I think there is a lot to the mental aspect for most investors and my thought is normally to prevent an early loss that scares someone out of market for 12-18 months.

Make sense?

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(@earlyretirementnowcom)
Joined: 8 years ago

Member
Posts: 349

@navypack   I can see that rationale for people getting into the market for the first time. If lump-sum investing is too scary, then DCA is certainly better than not investing at all.

But I also always point to the mathematically correct thing to do. 🙂

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