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DaemonionDaemonion Mountain ManUSARegistered User regular
edited July 2014 in Help / Advice Forum
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Daemonion on

Posts

  • grungeboxgrungebox Registered User regular
    edited October 2008
    What you're talking about is dollar cost averaging (DCA). That is, you have a set principal and may slowly invest it or invest all at once (some people conflate DCA with periodic investing, which is something else). Statistically, DCA is not worthwhile, and actually doesn't even reduce your risk to a significant degree. The problem is market timing; you're assuming the market will continue to decline over the proposed length of your DCA plan (let's say 6 months). You might be right, in which case you reduce your cost basis and come out ahead. Personally, I usually just put money into the market when I have it, regardless of whether it's a bull or a bear or whatever.

    Also, by World do you mean the All Except US fund or the new Total World fund? The latter would be redundant with your Total US Stock Market fund, that's why I ask.

    Bogleheads.org is a forum for Vanguard devotees. They can provide some more answers for you.

    grungebox on
    Quail is just hipster chicken
  • ThanatosThanatos Registered User regular
    edited October 2008
    If you believe the market is going to go down, you should put off investing now until you think it has hit bottom. If you think it is going to go up, you should drop it all in now. That's your answer.

    Anyone who tells you that they know what direction the market is going to move in is lying, or they'd be a billionaire.

    Thanatos on
  • DaemonionDaemonion Mountain Man USARegistered User regular
    edited July 2014
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    Daemonion on
  • grungeboxgrungebox Registered User regular
    edited October 2008
    Daemonion wrote: »
    I'm still a little on the fence, but I think I am thinking too much about this. Yes, I am investing a fair sum of money, but it is a long-term investment and makes up a relatively insignificant (for all intents and purposes) portion of my net worth.

    I'll probably end up going 50% in tomorrow, and the remaining 50% over a few months. Any objections?

    Just make sure the remaining 50% is in an interest-bearing account while you're waiting to deposit it.

    grungebox on
    Quail is just hipster chicken
  • DaemonionDaemonion Mountain Man USARegistered User regular
    edited July 2014
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    Daemonion on
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