It's a wonderful long-term investment when used correctly, in that it keeps you from panic-selling your actual long-term investments when the market is doing distressing things.
However on that subject i've got myself a little problem. It's the classic problem of a lump sum i just received a week or two ago from an inheritance. And wouldn't you know it, the markets are at all-time highs and feel uncertain. So what else is new?
I'm pretty certain the markets will be rather lower at some time in the next couple years, but it's against my principles to leave the money sitting in a MM fund for a potentially long time while waiting for a bear-market that may or may not happen, and how will i know what will have been (is that future-perfect tense there?) the best time to invest it? Like the thread said, cash is a terrible long-term investment when used wrongly, as many have found out.
So the best thing i can think to do is to probably follow some advice Mr Bogle gave in his first book -- for lump sums, invest 30% immediately and then 10% every quarter thereafter. Seems like a reasonable compromise. Maybe i should add that to my IPS.
However on that subject i've got myself a little problem. It's the classic problem of a lump sum i just received a week or two ago from an inheritance. And wouldn't you know it, the markets are at all-time highs and feel uncertain. So what else is new?
I'm pretty certain the markets will be rather lower at some time in the next couple years, but it's against my principles to leave the money sitting in a MM fund for a potentially long time while waiting for a bear-market that may or may not happen, and how will i know what will have been (is that future-perfect tense there?) the best time to invest it? Like the thread said, cash is a terrible long-term investment when used wrongly, as many have found out.
So the best thing i can think to do is to probably follow some advice Mr Bogle gave in his first book -- for lump sums, invest 30% immediately and then 10% every quarter thereafter. Seems like a reasonable compromise. Maybe i should add that to my IPS.
Statistics: Posted by MadHungarian — Sun Oct 27, 2024 12:45 am — Replies 442 — Views 61443
