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Is this a good time to invest?

Posted: Sat Aug 03, 2019 3:24 pm
by Scobie
Recently I was given some money and want to know if this is a good time to invest with all the folks saying we are at the end of a bull market [OT comment removed by admin LadyGeek]? I was thinking of going with VOO or VTI if I do something. Any ideas or thoughts? Thank you!

Re: Is this a good time to invest?

Posted: Sat Aug 03, 2019 3:26 pm
by delamer
What is your intended use of the money?

Re: Is this a good time to invest?

Posted: Sat Aug 03, 2019 3:28 pm
by Trader Joe
Scobie wrote: Sat Aug 03, 2019 3:24 pm Recently I was given some money and want to know if this is a good time to invest with all the folks saying we are at the end of a bull market [OT comment removed by admin LadyGeek]? I was thinking of going with VOO or VTI if I do something. Any ideas or thoughts? Thank you!!
It is always a great time to invest. VOO or VTI are excellent choices if you prefer to use ETF''s. I use the index fund version of VOO - VFIAX.

Re: Is this a good time to invest?

Posted: Sat Aug 03, 2019 3:30 pm
by bertilak
Scobie wrote: Sat Aug 03, 2019 3:24 pm Recently I was given some money and want to know if this is a good time to invest with all the folks saying we are at the end of a bull market [OT comment removed by admin LadyGeek]? I was thinking of going with VOO or VTI if I do something. Any ideas or thoughts? Thank you!
Old Chinese proverb: The best time to plant a tree is 20 years ago. The second best time is today.

Or you could ask the president. :happy

Re: Is this a good time to invest?

Posted: Sat Aug 03, 2019 3:32 pm
by Cycle
What does your IPS say? Does it say to market time? I put our annual bonuses into VTWAX on Thursday

Re: Is this a good time to invest?

Posted: Sat Aug 03, 2019 3:36 pm
by Flyer24
A downturn has been imminent since 2012. 😉

Re: Is this a good time to invest?

Posted: Sat Aug 03, 2019 3:54 pm
by Sandtrap
Yes.
It is a good time to invest.

j

Re: Is this a good time to invest?

Posted: Sat Aug 03, 2019 3:58 pm
by Phineas J. Whoopee
Hi Scobie.

I'd like to comment a little.

Investment isn't all about the stock market, whether or not a person thinks it's high, or low, or about to turn the other direction. Notably there is fixed income, often verbally reduced to its subset bonds. High-quality bonds, taken as a whole, are far less volatile than equities.

If you have an enormous amount of money (defined with respect to your own life and circumstances), and need to spend all of it very soon, then very conservative instruments are indicated. If you can reasonably divide it into several not-quite $250,000 chunks bank deposits could make sense.

If you have some money and intend to invest it over a long period of time, and then use it gradually, today's valuations aren't especially important, although it is mandatory to keep in mind in investing, depending on how one goes about it, it is always possible one could lose everything. That's simply true, and there's no intellectually honest way to pretend it isn't.

If there's a long while, decades or more, before you expect to need to spend the very last dollar, then long-term considerations matter far more than short-term ones.

Did that help?

PJW

Re: Is this a good time to invest?

Posted: Sat Aug 03, 2019 4:14 pm
by FIREchief
There's an old saying: "the best time to buy stocks is now, the best time to sell stocks is never."

That may not be the definitive answer, but I haven't seen a better answer.

Re: Is this a good time to invest?

Posted: Sat Aug 03, 2019 4:38 pm
by Scobie
Thank you. I am on a fixed income so I do not have a lot of money coming in. The hope is too invest in something conservative but a little better return than my high yield savings at 2%. VOO and VTI seem great, any other recommendations? Thank you!

Re: Is this a good time to invest?

Posted: Sat Aug 03, 2019 5:23 pm
by Dead Man Walking
How would you feel about a 50% downturn? You may need to determine your risk level before you invest. Someone always replies that today is the best day to invest a lump sum. It’s always best to determine your ability and need to take risk before you invest.

DMW

Re: Is this a good time to invest?

Posted: Sat Aug 03, 2019 5:33 pm
by Wakefield1
It's always a good time to invest. The question is what investment is appropriate.
Is the rule of thumb that "money needed in less than 7 years should not be in stocks" too strict?

Re: Is this a good time to invest?

Posted: Sat Aug 03, 2019 7:06 pm
by dratkinson
Scobie wrote: Sat Aug 03, 2019 4:38 pm Thank you. I am on a fixed income so I do not have a lot of money coming in. The hope is too invest in something conservative but a little better return than my high yield savings at 2%. VOO and VTI seem great, any other recommendations? Thank you!
Details. There may be a better answer, but it will depend upon us knowing your details. It may be time for your forum review.

Please consider providing all of the requested information, in the requested format (we're use to looking in specific places to find your information), and we'll try to provide a better answer.
See: viewtopic.php?f=1&t=6212

Add to above information.
--What is your annual income from all sources?
--What is your annual cost of living?
--Anything else we should consider?



Recommended books
--The Bogleheads' Guide to Retirement Planning.
--How to Make Your Money Last, Quinn

Get the books from your local library or through inter-library loan.

Re: Is this a good time to invest?

Posted: Sat Aug 03, 2019 7:35 pm
by ruralavalon
Scobie wrote: Sat Aug 03, 2019 3:24 pm Recently I was given some money and want to know if this is a good time to invest with all the folks saying we are at the end of a bull market [OT comment removed by admin LadyGeek]? I was thinking of going with VOO or VTI if I do something. Any ideas or thoughts? Thank you!

Yes, it is a good time to invest.

Holding on to cash while you wait for a better time to invest is likely to give you a negative real return net of inflation and taxes. I think it is better to invest in something with the prospect of a positive real return. Market timing (waiting for a good time to buy) is a fool's errand. No one can successfully do that consistently. If you wait for a good day to buy, you will never know if the next day, or the next week, or the next month, or even the next year might be an even better time to buy.

It was always my policy to invest whenever I had extra money available to invest.

Please read this: "What if you only invested at market peaks?"


Scobie wrote: Sat Aug 03, 2019 3:24 pmI was thinking of going with VOO or VTI if I do something. Any ideas or thoughts? Thank you!
Both Vanguard Total Stock Market ETF (VTI) and Vanguard S&P 500 ETF (VOO) are good choices for investing in domestic stocks. My preference would be Vanguard Total Stock Market ETF (VTI).

In my opinion an investing question with the word "time" in it is probably the wrong question.

In my opinion the better question is what your asset allocation (stock/bond mix) should be? Include both stocks and bonds, to reduce investing risk. Don't use just a stock fund by itself. Graph, "An Efficient Frontier: the power of diversification". Please see:
1) Wiki article Bogleheads® investment philosophy, part 3 "Never bear too much or too little risk"; and
2) Wiki article, "Asset allocation".

Re: Is this a good time to invest?

Posted: Sat Aug 03, 2019 8:29 pm
by Bacchus01
Yep. Invest away.

Re: Is this a good time to invest?

Posted: Sun Aug 04, 2019 5:57 am
by lazyday
Scobie wrote: Sat Aug 03, 2019 4:38 pmVOO and VTI seem great, any other recommendations?
Those both limit their investment to one country. It would be safer to diversify globally, such as with VT.

Re: Is this a good time to invest?

Posted: Sun Aug 04, 2019 9:24 am
by ruralavalon
Scobie wrote: Sat Aug 03, 2019 4:38 pm Thank you. I am on a fixed income so I do not have a lot of money coming in. The hope is too invest in something conservative but a little better return than my high yield savings at 2%. VOO and VTI seem great, any other recommendations? Thank you!
Either of those plus Vanguard Total Bond Market ETF (BND). Investing in just stock funds alone is risky, not conservative.

Or instead Vanguard LifeStrategy Conservative Growth Fund (VSCGX), Vanguard Moderate Growth Fund (VSMGX), or Vanguard Target Retirement Income Fund (VTINX).

If all you want is conservative and yielding a little better than a 2% savings account, consider:
1) Vanguard Prime Money Market Fund (VMMXX) current SEC Yield = 2.24%;
2) Vanguard Ultra Short-term Bond Fund (VUBFX) current SEC Yield = 2.42%; or
3) iShares Ultra Short-Term Bond ETF (ICSH) current SEC Yield = 2.58%.

Re: Is this a good time to invest?

Posted: Sun Aug 04, 2019 9:42 am
by JoeRetire
Scobie wrote: Sat Aug 03, 2019 3:24 pm Recently I was given some money and want to know if this is a good time to invest
Yes. This is a good time to invest.

Re: Is this a good time to invest?

Posted: Sun Aug 04, 2019 9:59 am
by Wiggums
You should invest now, consistent with your asset allocation.

Good luck to you...