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What to do with cash from recent sale of condo..
Old 06-18-2019, 02:05 PM   #1
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What to do with cash from recent sale of condo..

I just sold my condo and am moving in with my fiance in her lovely home by the sea. I'd like to use the proceeds from the sale to purchase some VTI but hesitate due to the market being at such highs right now. Its long term money with a 10-15 year horizon so I know that I really should put it to work in the market but I'm concerned that we're overdue for a correction or worse. Can I get some thoughts? This is my first thread and just have to say that this site is extremely helpful. Thanks everyone!
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Old 06-18-2019, 02:09 PM   #2
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VTI is the simplest thing to do. My thoughts are always a penny out of the market, is a penny not earning money. In 15 years you might remember the price you paid for VTI, but undoubtedly it will be so much higher it won't be a memory of any significance.

No need to get fancy with the windfall.
AA (Stock/Bond/Cash ): 97.5/0/2.5% MIX (Small/Mid/Large): 25/25/50% BLEND(US/Foreign): 100/0%, REIT (Real Estate Equity): ~50% of Assets

FIRE in 2031 @ 50yrs old (+/- 2yrs) w/ a hypothetical $2.5mil portfolio, 3 appreciated homes worth $1.0mil and rental income to fund my gap years until RMD. Assets will go to an inherited IRA where I plan on watching the investments grow until I die or the trust gets executed.
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Old 06-18-2019, 02:30 PM   #3
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Welcome to the forum!

Some random thoughts.

1) Are you moving other funds out of the market? If not, why treat these funds differently.
2) Assuming you are right about a downturn, when would you get back in, 10% down, 20% down, 30% down? What if your "back in" point never materializes?
3) Do you have a set AA? If so, I would follow it. It is there to keep us from making emotional decisions.
4) Are you comfortable with your AA? If so stick with it. If not make a change.
5) What if the market goes up another 30% before it goes down 20%?
6) I think the forum will be split on whether to put it all in now or monthly over the next 12 months. Either would be okay.

I rarely make predictions, but I am fairly confident the market will be higher in 15 years.
"Oh, twice as much ain't twice as good
And can't sustain like one half could
It's wanting more that's gonna send me to my knees" - John Mayer
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Old 06-18-2019, 09:53 PM   #4
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Today's high will be just a low dot on the graph in 8-10 years.
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Old 06-18-2019, 10:14 PM   #5
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Straight to Las Vegas or Atlantic City. Put it all on the roulette table, 23 red to be specific
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Old 06-19-2019, 05:46 AM   #6
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Don't try to time the market. Invest according to your (hopefully) existing plan and asset allocation.
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Old 06-19-2019, 05:55 AM   #7
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Over 40+ years of investing I've never worried about the market being too high or too volatile. Some years my portfolio went down but more of the time it went up. I just stayed in the market. It's worked for me.
"It is better to have a permanent income than to be fascinating". Oscar Wilde
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Old 06-19-2019, 07:51 AM   #8
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Welcome and congratulations, DRC726!

Originally Posted by DRC726 View Post
Its long term money with a 10-15 year horizon
This part leaves me wondering if you have a specific need for that money in 10-15 years, or if it's just part of your retirement spending plan. If you can be flexible, then VTI sounds about right. If you have solid plans to need all the money around that time, then I'd still start by putting it in VTI, but start moving it to something less aggressive/risky about 2-3 years out....if the markets aren't hitting record lows for the year. If they were, I'd try to put it off until the market improved, and consequently put off whatever spending I had planned until the markets improved, if at all possible. This way you can build in some flexibility and reduce the chances of selling off during a recession.
-Looking to FIRE in the mid-2020s, which would be our mid-50s.
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