Yup. And it is a clear case of market timing. But DCA'ing a large lump sum is also about overcoming the fear of a large market drop right after you invest the whole thing in one fell swoop. And it is also about going ahead and investing some of it now, regardless of what you think the market is going to do. If the market was lower or completely average I'd recommend investing all at once. Or if this was something that was going to happen many times in the future I'd go all at once and let the averages take over. For a one-time shot under these conditions I'd go partially with my hopefully reasoned expectations (not a gut feeling) and DCA. At least I'm not holding all the cash waiting for the perfect time to invest.
buying into the stock market
- Thread starter frank
- Start date
Yup. And it is a clear case of market timing. But DCA'ing a large lump sum is also about overcoming the fear of a large market drop right after you invest the whole thing in one fell swoop. And it is also about going ahead and investing some of it now, regardless of what you think the market is going to do. If the market was lower or completely average I'd recommend investing all at once. Or if this was something that was going to happen many times in the future I'd go all at once and let the averages take over. For a one-time shot under these conditions I'd go partially with my hopefully reasoned expectations (not a gut feeling) and DCA. At least I'm not holding all the cash waiting for the perfect time to invest.
schroedersmomanddad
Confused about dryer sheets
Dog of the Dow
Any thoughts on buying the Dogs of the Dow? I'm still trying to decide how to invest our nest egg. I'm leaning toward a 50/50 split between stock/bonds.
All comments are appreciated.
Any thoughts on buying the Dogs of the Dow? I'm still trying to decide how to invest our nest egg. I'm leaning toward a 50/50 split between stock/bonds.
All comments are appreciated.
sailfish
Dryer sheet aficionado
- Joined
- Jun 11, 2008
- Messages
- 49
schroedersmomanddad said:
I like the top 10 dividend payers of the DOW 30. They are in most large cap funds anyway. I used to be big on mutual funds for the equity part of my retirement portfolio, but they didn't pay enough dividends so I could just live on that plus SS. Now I try to usually hold solid dividend payers that have a very long track record of increased payments. I am heavy in energy but I can live with the large swings that do occur, like at the present time. I use Vanguard bond funds for the defensive part, as they also pay interest. I am 66 with a 70/30 ratio of equity/bonds.
ReadySkiDaddy
Dryer sheet aficionado
+ 3 for ETF's through a deep discount brokerage. I'd diversify ETF's though. Weight more towards conservative ETF's like SPLV, XLU, XLP and maybe even hedge the market with some GLD.
"By periodically investing in an index fund the know-nothing investor can actually outperform most investment professionals." -- Warren Buffett
"The statistical evidence proving that stock index funds OUTperform between 80% and 90% of actively managed equity funds is so overwhelming that it takes enormously expensive advertising campaigns to obscure the truth from investors.”-- Peter Lynch
"By periodically investing in an index fund the know-nothing investor can actually outperform most investment professionals." -- Warren Buffett
"The statistical evidence proving that stock index funds OUTperform between 80% and 90% of actively managed equity funds is so overwhelming that it takes enormously expensive advertising campaigns to obscure the truth from investors.”-- Peter Lynch
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