The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: BiggerFishToFI on October 10, 2018, 12:17:14 PM
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Thinking about buying 5k or so in VTSAX taxable account today as it has gone down the past few days and is down 1.91% as of right now.
This money will come out of an emergency fund of ~20k
Good idea or am I timing the market and should just keep with my regular contributions.
It seems (small sample size) that the market often spikes the day after a dip like this - is there evidence to this?
I would rebalance but I am 100% equities :)
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Buying is never a bad idea assuming you don’t need or care about that money. I will buy today as well as I do weekly anyway, but once that money touches my brokerage account it is dead to me. I absolutely do not need it at all.
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Statistically time in the market > everything else. If you have money you were planning on putting in the market, you're better off doing it sooner than later.
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Sure better prices than last week. But this dip only takes us back to mid summer levels. If the funds were emergency savings then, they should probably stay that way.
If emergency fund can be replenished soon, then sure go ahead. But the purchase should be for the long term
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If the funds were emergency savings then, they should probably stay that way.
Seconded. Also, I'm guessing 5K represents a small fraction of your portfolio. It's probably not going to make much of a difference one way or another, no matter what the market does. In 30 years, today's move is going to look like a little wiggle on a long-term chart.
If, instead, you just wait until your next scheduled deposit, who's to say you won't get a better price then?
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My wife and I have a stash for a down payment. We will consider moving 50% to equities if the S&P500 is off the 52 week high by >40%.
That is if I can convince DW it's a good idea after a 40% decline, sounds good in theory.
I'm not against having emergency funds invested. But only if your taxable account, ROTH, and bond allocation is able to both withstand a 60% decline in equities and simultaneously get you through a year or two of joblessness.
Once we gave 2-3x in the taxable account we will no longer have a cash emergency fund.
For a 5-10% dip... nah, just be happy to buy a few extra shares this month with normal deposits. Maybe fill up that IRA if you haven't yet.
Slow and steady, no sudden movements.
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Buying today is like buying at the first of the year, nice discount. If you buy international, its an even bigger discount. In fact, I think international is a fantastic buy right now given its taken a decent hit this year.
I took a good sized business distribution a couple weeks ago that's been sitting in ally (~ 45 K after tax). Wasn't waiting to time the market, just hadn't gotten around to investing it. Glad to have a nice small discount.
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I bought 20k worth of index funds today. Wish I had more money to invest.
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wish I had money set aside to buy dips, but I'm fully invested all of the time.
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Less than double digits is background noise. Wake me up when the next bear hits and I might make some minor strategy tweaks.
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or am I timing the market
Anyone who asks if they are timing the market, are usually timing the market.
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I threw an extra $15,000 in the ole S&P 500 index fund today!
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I threw an extra $15,000 in the ole S&P 500 index fund today!
Why didn't you have the 15,000$ in the market yesterday?
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Just for fun, I looked at the last time I bought in to SCHB. It was during one of those market highs. After yesterday's huge dive, my market high buy still was at a huge bargain by comparison. Time in market.
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or am I timing the market
Anyone who asks if they are timing the market, are usually timing the market.
"I don't want to market time, but I'm going to market time no matter what you say. Any advice?"
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or am I timing the market
Anyone who asks if they are timing the market, are usually timing the market.
"I don't want to market time, but I'm going to market time no matter what you say. Any advice?"
Ha! +1
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I'm always fully invested - but this little correction is causing me some extra consternation, because I have company RSUs vesting on November 1st. And as a volatile tech stock, we tend to follow the market but with a multiplier...if the market is up a little, we're up bigger, and vice versa. Barring material news about our business, of course.
When I sell those shares in early November, the proceeds are going into VTSAX/VTIAX/SWAGX (due to where my biggest pre-tax account is). With the current dip we're off about 20% from previous highs, so while I will probably get a discount on the market (barring a big recovery over the next 3 weeks), the discount isn't going to make up for the bigger drop in the RSU value.
But we have an earnings call between now and then anyway, which tends to drive the stock in one direction or the other. Crossing fingers it's the good direction for Q3 results.
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I'm not buying the dip, because I don't have cash on the sidelines to buy with. With that said, I'm always happy to see stocks on sale, and I do buy in every two weeks with my 401k.
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I tried to buy the dip but got excited about a sale and bought before the BIG dip. Oops. It wasn't a ton of money, but a good reminder about my inability to time the market.
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I'm not buying the dip, because I don't have cash on the sidelines to buy with. With that said, I'm always happy to see stocks on sale, and I do buy in every two weeks with my 401k.
Just need to make it to Friday...
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Just need to make it to Friday...
Cool! I need to make it to next Friday...
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RIP everyone who bought yesterday.
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RIP everyone who bought yesterday.
Hahahahaha. This is excellent!
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RIP to anyone who tries to market-time a lump sum in before this 20%+ correction is over ;)
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RIP to anyone / anything that is dead!
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RIP to anyone who tries to market-time a lump sum in before this 20%+ correction is over ;)
I would actually sleep better at night if there were a 20% correction. Not just b/c still in accumulation phase, but I'd rather just get the pain over with. These 3% drops are like dipping your toes in a cold pool. Just jump in already.
I'm with you 100%
Sent from my SM-N950U using Tapatalk
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Here's what my crystal ball says: Market isn't not done going down. Tomorrow will be a bad day too.
Yesterday down 830 points. Today down 550 points. Tomorrow down +/- 200 points.
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Here's what my crystal ball says: Market isn't not done going down. Tomorrow will be a bad day too.
Yesterday down 830 points. Today down 550 points. Tomorrow down +/- 200 points.
If the market isn't not done going down, then tomorrow will be a good day. Make up your mind already.
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My crystal ball says 'invest the money you have today'. It's been stuck on that message for more than a the last 15 years though. So far it has always been right.
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One of my bridge partners (card game) decided to mortgage his house here in socal after the 2009 crash. I believe it was paid in full, so it was a huge amount of cash he took out and put it all into the market. He told his wife it was a once in a lifetime opportunity and if it didn't work out he'd just keep working (psychologist). He retired several years ago from the gains. He's also an active trader, and has been very successful at it (we'll see how he does for the next 10-20 years). Funny thing is, he advises everyone else to put their money in index funds. Pretty nuts, everyone thought he was insane to use leverage for investing. I couldn't imagine taking that kind of risk. He was lucky and ballsy, I'm sure he attributes it all to skill. Bridge is a game of calculating risk vs reward and making good judgment calls based on these, tons of wall street investors and famous traders play it (i.e. buffet is a player, but only average skill -- most of the top players have experience on wall street). This guy is one of the top players, so he is quite good at evaluating a good risk position, but still he was extremely fortunate.
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Well, time for me to get a new crystal ball. Dow is up over 300 points already and it's only 10:00 a.m.
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I was kinda hoping it would stay down long enough to invest the money I got paid today, just waiting for it to show up in Questrade. It seems like I always miss these little dips because by the time my transfer clears, it's gone up again.
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Let us quote the prophet Mick Jagger "
Time is on my side, yes it is
Time is on my side, yes it is
Now you all were saying that you want to be free
But you'll come runnin' back (I said you would baby)
You'll come runnin' back (like I told you so many times before)
You'll come runnin' back to me, yeah
Time is on my side, yes it is
Time is on my side, yes it is
You're searching for good times but just wait and see
You'll come runnin' back (I said you would darling)
You'll come runnin back (spend the rest of life with ya baby)
You'll come runnin' back to me
Go ahead baby, go ahead, go ahead and light up the town
And baby, do anything your heart desires
Remember, I'll always be around
And I know, I know like I told you so many times before
You're gonna come back
Yeah you're…
"
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Well, time for me to get a new crystal ball. Dow is up over 300 points already and it's only 10:00 a.m.
Don't worry things will continue to deteriorate.
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Um. Which DIP? The markets look UP to me?
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Here's what my crystal ball says: Market isn't not done going down. Tomorrow will be a bad day too.
Yesterday down 830 points. Today down 550 points. Tomorrow down +/- 200 points.
My crystal ball says that by the time I expect to withdraw from investments I'll be happy with the results :)
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I panicked late in the day yesterday and sold $5,500 of VTI. I'm going to use it to accelerate our mortgage payoff.
Lol, just kidding. But yesterday morning I did take $5,500 out of the roof replacement account to fund this year's Roth IRA. The way the timing worked with Vanguard, they executed the purchase at the COB price. Yes, I was gleefully watching as the indexes dropped sharply just before 4PM.
On the other hand, my biweekly paycheck/pre-tax contributions go through at COB prices today, so naturally markets are probably going to regain yesterday's losses and then some. I'm looking at you, VPMAX.