Have some savings doing nothing, how to invest?

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Victorious Secret
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Have some savings doing nothing, how to invest?

Post by Victorious Secret » Thu Oct 12, 2017 6:48 pm

Was originally planning on remodeling the house but those plans are now canceled. We have roughly $100k sitting in a savings account doing nothing. We want to put into this our core four lazy portfolio now.

With the US markets at all-time highs and our US total stock market allocation at close to 50%, I am not sure if this is the wisest thing to do. However, I am basically saying I am trying to time the market which is also difficult/dumb to do. I am planning on retiring at around 2045-2050.

I probably shouldn't worry about trying to time the market and just stick with my strategy, am I right?? What do you guys think?

I also have $0 in crypto right now which I am seriously thinking about building a smallish portfolio of BTC and altcoins with a pretty even alloation. Thoughts on this?

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Sandtrap
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Re: Have some savings doing nothing, how to invest?

Post by Sandtrap » Thu Oct 12, 2017 8:45 pm

You might get more responses if you use this format:
viewtopic.php?f=1&t=6212
So that things can be considered in a greater context.

Basics:
https://www.bogleheads.org/wiki/Boglehe ... philosophy

IMHO your retirement is a long long ways away. It probably would not matter if you added to your portfolio today, next month, or next year, lump sum, or DCA. Timing is not a consideration.
But again, without a greater context, it's just a single observation based on very little data you present.

expert help on the way. . . . . .
welcome :D

SimplicityNow
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Re: Have some savings doing nothing, how to invest?

Post by SimplicityNow » Thu Oct 12, 2017 9:40 pm

Just my opinion, for what it is worth.
Victorious Secret wrote:
Thu Oct 12, 2017 6:48 pm
Was originally planning on remodeling the house but those plans are now canceled. We have roughly $100k sitting in a savings account doing nothing. We want to put into this our core four lazy portfolio now.

With the US markets at all-time highs and our US total stock market allocation at close to 50%, I am not sure if this is the wisest thing to do. However, I am basically saying I am trying to time the market which is also difficult/dumb to do. I am planning on retiring at around 2045-2050.Correct, you are talking about timing the market. The market is constantly making all-time highs.

I probably shouldn't worry about trying to time the market and just stick with my strategy, am I right??Yes you are right. What do you guys think?

I also have $0 in crypto right now which I am seriously thinking about building a smallish portfolio of BTC and altcoins with a pretty even alloation. Thoughts on this? It is pure speculation. If you want to gamble go ahead. But call it what is is, gambling, not investing.

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ruralavalon
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Re: Have some savings doing nothing, how to invest?

Post by ruralavalon » Fri Oct 13, 2017 10:17 am

Victorious Secret wrote:
Thu Oct 12, 2017 6:48 pm
Was originally planning on remodeling the house but those plans are now canceled. We have roughly $100k sitting in a savings account doing nothing. We want to put into this our core four lazy portfolio now.

With the US markets at all-time highs and our US total stock market allocation at close to 50%, I am not sure if this is the wisest thing to do. However, I am basically saying I am trying to time the market which is also difficult/dumb to do. I am planning on retiring at around 2045-2050.

I probably shouldn't worry about trying to time the market and just stick with my strategy, am I right?? What do you guys think?
You are right. Don't worry about trying to time the market. Just stick with your investing strategy.

Victorious Secret wrote:I also have $0 in crypto right now which I am seriously thinking about building a smallish portfolio of BTC and altcoins with a pretty even alloation. Thoughts on this?
I think crypto currency is a bad idea for an investment.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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nisiprius
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Re: Have some savings doing nothing, how to invest?

Post by nisiprius » Fri Oct 13, 2017 10:25 am

Victorious Secret wrote:
Thu Oct 12, 2017 6:48 pm
...We have roughly $100k sitting in a savings account doing nothing. We want to put into this our core four lazy portfolio now...
Just a little mini-rant, because people who want to sell you stocks, bonds, and mutual funds like to portray savings accounts as "doing nothing" and "losing value to inflation."

They like to blur the distinction between literal physical cash, which is worth the same number of dollars with no growth at all, and things commonly called "cash," like bank accounts, savings bonds, Treasury bills, and money market mutual funds, which pay interest. The latter, in fact, historically, have not only kept pace with inflation, but have eked out a tiny little real return.

And don't think that it isn't "invested." It is. It's invested in a savings account. "Savings" means whatever money you don't spend, and "investments" are whatever you do with your "savings."

What I'm saying is: don't say things like "doing nothing." Unless it's a really lousy savings account, it's doing something. Try to look at your bank account options clearly. It's just possible that one of the things you might do, if you don't need it to be absolutely liquid, is to look around a bit and see whether your savings account is good enough or whether you should shop the competition, and see whether there are bank accounts options that pay a bit more in exchange for less perfect liquidity.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.

Victorious Secret
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Re: Have some savings doing nothing, how to invest?

Post by Victorious Secret » Fri Oct 13, 2017 4:03 pm

@Sandtrap, @SimplicityNow, @ruralavalon, @nisiprius

Thank you so much for your replies! I will take a good look at your comments/questions and respond tonight. Also I will adjust to post in the proper format Sandtrap :)

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Sandtrap
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Re: Have some savings doing nothing, how to invest?

Post by Sandtrap » Fri Oct 13, 2017 9:26 pm

More helpful links: (some duplicates)
Bogle Philosophy
https://www.bogleheads.org/wiki/Boglehe ... philosophy
Here are links to the wiki's "Getting Started" and "Investing Startup Kit" pages:
https://www.bogleheads.org/wiki/Getting_started
https://www.bogleheads.org/wiki/Boglehe ... art-up_kit
Define General Investment Goals and Objectives
https://www.bogleheads.org/wiki/Invest ... _statement
Suggested Reading List
https://www.bogleheads.org/RecommendedReading.php
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viewtopic.php?f=1&t=6212

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