seek advice on investing money that is currently sitting in my saving account

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
ventureandy
Posts: 5
Joined: Wed Oct 10, 2018 8:46 pm

seek advice on investing money that is currently sitting in my saving account

Post by ventureandy » Wed Oct 10, 2018 9:18 pm

Hi there

I have been learning investment basics by reading posts on this forum for some time. And I have to say I've learned a lot. Thank you all.

I was just about to move some of my savings that is currently sitting in the regular saving account to stock index funds like VTSAX to achieve the target AA (BTW, I am in my mid 30s). Then we see what's been going on in recent weeks. It makes me wonder what to do now. I have a few thoughts:

1. follow the original plan - invest in stock index funds
2. invest in bond index fund
3. park the money in CD or iShare temporarily until the market is more clear
4. hold off any investment at the moment, keeping the money in the saving as is

Any suggestions will be greatly appreciated.

dreamjob9
Posts: 124
Joined: Fri Mar 29, 2013 3:13 pm

Re: seek advice on investing money that is currently sitting in my saving account

Post by dreamjob9 » Wed Oct 10, 2018 9:45 pm

I vote 3 or 4. Others are going to say "don't time the market". BUT, stocks are on their way down. No one knows how far or for how long, but lump suming a lot of $ right now may not be the best idea. Dollar cost average or wait is my advice.

User avatar
Dale_G
Posts: 3219
Joined: Tue Feb 20, 2007 5:43 pm
Location: Central Florida - on the grown up side of 82

Re: seek advice on investing money that is currently sitting in my saving account

Post by Dale_G » Wed Oct 10, 2018 10:11 pm

Invest money when you have it available. The market goes up and down, but over time it is mostly up.

No one can know whether it will be up or down tomorrow, or over the next week, month or year.

Dale
Volatility is my friend

User avatar
fortfun
Posts: 2029
Joined: Tue Apr 19, 2016 7:31 pm

Re: seek advice on investing money that is currently sitting in my saving account

Post by fortfun » Wed Oct 10, 2018 10:24 pm

ventureandy wrote:
Wed Oct 10, 2018 9:18 pm
Hi there

I have been learning investment basics by reading posts on this forum for some time. And I have to say I've learned a lot. Thank you all.

I was just about to move some of my savings that is currently sitting in the regular saving account to stock index funds like VTSAX to achieve the target AA (BTW, I am in my mid 30s). Then we see what's been going on in recent weeks. It makes me wonder what to do now. I have a few thoughts:

1. follow the original plan - invest in stock index funds
2. invest in bond index fund
3. park the money in CD or iShare temporarily until the market is more clear
4. hold off any investment at the moment, keeping the money in the saving as is

Any suggestions will be greatly appreciated.
Bogleheads will need your complete story to give you good advice. If you go back to the forum homepage, you will see the instructions. Have you maxed your Roth IRA? Are you maxing work 401k, etc? Outstanding debt, etc?
viewtopic.php?f=1&t=6212

magicrat
Posts: 688
Joined: Sat Nov 29, 2014 7:04 pm

Re: seek advice on investing money that is currently sitting in my saving account

Post by magicrat » Wed Oct 10, 2018 10:28 pm

ventureandy wrote:
Wed Oct 10, 2018 9:18 pm
Then we see what's been going on in recent weeks
What happened?

MotoTrojan
Posts: 4977
Joined: Wed Feb 01, 2017 8:39 pm

Re: seek advice on investing money that is currently sitting in my saving account

Post by MotoTrojan » Wed Oct 10, 2018 10:43 pm

The news is made to get clicks. Nothing weird has happened recently. The last 2 years have actually been historically calm markets.

I’d take all the time you need to make a plan including tax-advantaged accounts, taxable, tax efficient fund placement, and an AA you can keep for at least 5 years (or a plan at least) and then dive into the market.

dreamjob9
Posts: 124
Joined: Fri Mar 29, 2013 3:13 pm

Re: seek advice on investing money that is currently sitting in my saving account

Post by dreamjob9 » Thu Dec 20, 2018 10:36 pm

dreamjob9 wrote:
Wed Oct 10, 2018 9:45 pm
I vote 3 or 4. Others are going to say "don't time the market". BUT, stocks are on their way down. No one knows how far or for how long, but lump suming a lot of $ right now may not be the best idea. Dollar cost average or wait is my advice.
Best piece of advice I have given on this forum. I wish I would have listened to myself.

radiowave
Posts: 2237
Joined: Thu Apr 30, 2015 5:01 pm

Re: seek advice on investing money that is currently sitting in my saving account

Post by radiowave » Thu Dec 20, 2018 10:41 pm

OP welcome to the forum.

If you have a plan, and one that lets you sleep at night, just proceed without beholding to the market. Yes things seem crazy right now, but you are investing over decades. Now is actually a good time to buy domestic stock funds like the excellent Vanguard VTSAX. Go ahead and execute you plan and stay the course.
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page

User avatar
smarcus3
Posts: 260
Joined: Sun Nov 18, 2018 9:57 pm
Location: USA

Re: seek advice on investing money that is currently sitting in my saving account

Post by smarcus3 » Thu Dec 20, 2018 10:48 pm

Mathematically buying immediately is better than dollar cost average. However if it's causing too much stress buy it in bite size chunks to sleep easier. In the grand scheme of things your time horizon is long and what happens next year doesn't matter to you.
This is my personal opinion. I'm an engineer not a financial advisor.

Post Reply