Buying 3 Funds

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Thegame14
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Buying 3 Funds

Post by Thegame14 » Tue Jun 19, 2018 8:55 am

I transferred my 401K to vanguard IRA. It has been sitting there for a couple days. I was worried that with Trump talking tariffs and Fed raising rates that the market could drop. It seems like it has gone down about 500 points this week, so I am thinking I should make my entrance now that we had a small dip. if I put in my purchase today, when does the actual "buy" happen, or if the DOW is down do you just wait until the following day? I am not necessarily trying to "time" the market, but I felt like this was easily short term foreseeable.

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FrugalInvestor
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Re: Buying 3 Funds

Post by FrugalInvestor » Tue Jun 19, 2018 9:13 am

Call Vanguard and ask about the specific timing of trade placement/execution, then you'll know that the answer you get is correct with regard to your account. In general the trade will happen at the close of today's market but there is an earlier cut-off time for the trade to be placed.

You can wait to see what the market (fund) does and then put your trade in the next morning but there's no guarantee that it won't go the opposite way tomorrow. You can also watch what the market is doing today up until close to the trade cut-off time but there's still no guarantee that it won't reverse itself between then and the close.

Remember that you're (hopefully) investing for the long-term and that daily gyrations become pretty meaningless over time.
IGNORE the noise! | Our life is frittered away by detail... simplify, simplify. - Henry David Thoreau

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Sandtrap
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Location: Hawaii😀 Northern AZ.😳 Retired.

Re: Buying 3 Funds

Post by Sandtrap » Tue Jun 19, 2018 9:53 am

Read About Bob, The Worst Market Timer
What happens if you only invested at market highs?
http://awealthofcommonsense.com/2014/0 ... ket-timer/

j

Thegame14
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Re: Buying 3 Funds

Post by Thegame14 » Tue Jun 19, 2018 10:15 am

like I said, I am not trying to "time the Market", but this is a one time roll over that just hit my account a couple days ago, and this short term drop was easily forseeable, so I am not waiting for a huge run up or a huge crash, just a short term dip to buy on in the course of normal market fluctuations. this seems like a short term dip, Trump will eventually make a deal with China and the market will adjust.

So I am asking if I make my buys, do they go in immediately or is it end of day or something else for buying VTSAX, VTIAX, and VBTLX?

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FrugalInvestor
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Re: Buying 3 Funds

Post by FrugalInvestor » Tue Jun 19, 2018 10:43 am

Thegame14 wrote:
Tue Jun 19, 2018 10:15 am
So I am asking if I make my buys, do they go in immediately or is it end of day or something else for buying VTSAX, VTIAX, and VBTLX?
The price is as of the end of the trading day but there is an earlier cut-off for placing the trade. I can't tell you exactly when that is but I believe that when you place your order the system will give you a notification of that (or you can just call and ask).
IGNORE the noise! | Our life is frittered away by detail... simplify, simplify. - Henry David Thoreau

Thegame14
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Re: Buying 3 Funds

Post by Thegame14 » Tue Jun 19, 2018 11:32 am

Vanguard said it will be at the end of today's trading price. At what amount of money does it makes sense to dollar cost average going into the funds, or does it just make sense to buy? I am buying about 90K worth of VTSAX, VTIAX, and VBTLX with a 60-20-20 AA

itsgot8
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Re: Buying 3 Funds

Post by itsgot8 » Tue Jun 19, 2018 11:46 am

Thegame14 wrote:
Tue Jun 19, 2018 11:32 am
Vanguard said it will be at the end of today's trading price. At what amount of money does it makes sense to dollar cost average going into the funds, or does it just make sense to buy? I am buying about 90K worth of VTSAX, VTIAX, and VBTLX with a 60-20-20 AA
Are you asking whether you should take the $90k and buy all of those positions now or do a little at a time (DCA)? I would recommend just buy it all now. To do anything else is just trying to time the market.

WhiteMaxima
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Re: Buying 3 Funds

Post by WhiteMaxima » Tue Jun 19, 2018 11:48 am

DCA 10k for 9 months into three funds with no regret.

Thegame14
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Re: Buying 3 Funds

Post by Thegame14 » Tue Jun 19, 2018 11:53 am

itsgot8 wrote:
Tue Jun 19, 2018 11:46 am
Thegame14 wrote:
Tue Jun 19, 2018 11:32 am
Vanguard said it will be at the end of today's trading price. At what amount of money does it makes sense to dollar cost average going into the funds, or does it just make sense to buy? I am buying about 90K worth of VTSAX, VTIAX, and VBTLX with a 60-20-20 AA
Are you asking whether you should take the $90k and buy all of those positions now or do a little at a time (DCA)? I would recommend just buy it all now. To do anything else is just trying to time the market.
yes, but I was more thinking like half today and half in like a month. or do I just buy all now and forget about it. It is a rollover 401K so not new dollars, just the rollover. New dollars are going into my current 401K each paycheck.

Walkure
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Re: Buying 3 Funds

Post by Walkure » Tue Jun 19, 2018 1:35 pm

Thegame14 wrote:
Tue Jun 19, 2018 11:53 am

yes, but I was more thinking like half today and half in like a month. or do I just buy all now and forget about it. It is a rollover 401K so not new dollars, just the rollover. New dollars are going into my current 401K each paycheck.
In general, using DCA for a lump sum is more of a psychological tool to overcome jitters about getting invested, not about getting a better average price. Splitting just one month won't help with that, because it's too easy to compare two transactions and feel like you "overpaid" on whichever one transacted at a higher price. You'd have to autopilot it over at least 4 or 5 months to get the DCAing advantage of convincing your brain to process it differently. Given how long that means keeping money out of the market, and the fact that you'll be continuing to contribute going forward, I'd recommend one clean buy all at once.

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FrugalInvestor
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Re: Buying 3 Funds

Post by FrugalInvestor » Tue Jun 19, 2018 1:40 pm

Thegame14 wrote:
Tue Jun 19, 2018 11:32 am
At what amount of money does it makes sense to dollar cost average going into the funds, or does it just make sense to buy?
There isn't a 'right' answer. Like choosing an asset allocation that lets you sleep at night whether you lump sum or dollar cost average is only for your psychological comfort.
IGNORE the noise! | Our life is frittered away by detail... simplify, simplify. - Henry David Thoreau

itsgot8
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Re: Buying 3 Funds

Post by itsgot8 » Thu Jun 21, 2018 9:22 am

Thegame14 wrote:
Tue Jun 19, 2018 11:53 am
itsgot8 wrote:
Tue Jun 19, 2018 11:46 am
Thegame14 wrote:
Tue Jun 19, 2018 11:32 am
Vanguard said it will be at the end of today's trading price. At what amount of money does it makes sense to dollar cost average going into the funds, or does it just make sense to buy? I am buying about 90K worth of VTSAX, VTIAX, and VBTLX with a 60-20-20 AA
Are you asking whether you should take the $90k and buy all of those positions now or do a little at a time (DCA)? I would recommend just buy it all now. To do anything else is just trying to time the market.
yes, but I was more thinking like half today and half in like a month. or do I just buy all now and forget about it. It is a rollover 401K so not new dollars, just the rollover. New dollars are going into my current 401K each paycheck.
It's better to buy it all now and forget about it. If you try to spread it out, you'll risk playing head games with yourself and could start taking counter-production actions.

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