Unexpected small cash Infusion during market high

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RevFran
Posts: 14
Joined: Sun Jul 07, 2019 4:48 pm

Unexpected small cash Infusion during market high

Post by RevFran » Sat Jul 13, 2019 10:07 pm

If one is maxing retirement accounts according to the BH-3-fold, and has a small, modest mortgage and no other debt, and a 12-month EF in cash, and one expects that several times in 2019 one will get unexpected gifts between $3,000 and $11,000 —- given market highs, what’s the best thing to do with the spurts of atypical cash?

AlexanderTheMediocre
Posts: 32
Joined: Wed Aug 17, 2016 6:20 pm

Re: Unexpected small cash Infusion during market high

Post by AlexanderTheMediocre » Sat Jul 13, 2019 10:37 pm

Invest according to your investment plan. There is never an atypical time.

sf_tech_saver
Posts: 182
Joined: Sat Sep 08, 2018 9:03 pm

Re: Unexpected small cash Infusion during market high

Post by sf_tech_saver » Sat Jul 13, 2019 10:37 pm

Relative size/timing of each extra lump you get isn't really the question as a 3 Fund BH works for many many orders of magnitude investing exactly the same way.

You can have a $10k, $100k, $1m, $10m or even a $100M portfolio and the 3 fund portfolio will do its job. All you really have to worry about is taxes at some point of scale....

What may seem like either a lot or a little to you doesn't matter to the math and mechanism of the portfolio.

Your job is simple. Pick and AA then direct as much as possible into it as fast as you can. As soon as you worry about relative pricing you are at risk of losing your way.

For me, anything short of a $1M check gets lump summed into the portfolio ASAP. And the one time a $2.5M windfall hit I DCA'ed it over a month.

VTI isn't going to notice anything you do :)
VTI is a modern marvel

j0nnyg1984
Posts: 560
Joined: Sun Apr 24, 2016 9:55 am

Re: Unexpected small cash Infusion during market high

Post by j0nnyg1984 » Sun Jul 14, 2019 12:12 am

I personally consider maxing my IRA, HSA, and 401k sufficient investment; I have no desire for a taxable account at this time. All “surplus” money goes into my money market fund and sits there until I find something to do with it.

Mortgage was paid off a couple of months ago, so I’m currently “rebuilding” the account, and may look into another home / land purchase next. It will be awhile.

retiredjg
Posts: 36804
Joined: Thu Jan 10, 2008 12:56 pm

Re: Unexpected small cash Infusion during market high

Post by retiredjg » Sun Jul 14, 2019 7:52 am

RevFran wrote:
Sat Jul 13, 2019 10:07 pm
... given market highs, what’s the best thing to do with the spurts of atypical cash?
Market highs are irrelevant. Do whatever you would do any other time. Invest it according to your plan or pay off debts or save it for some special event like a vacation.

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