Author Topic: Transferring a lump sum from a low interest savings to an index fund  (Read 591 times)

glueonquark

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I've been suffering from a bad case of procrastination.  I meant to transfer money from my savings account where it earns virtually nothing (and the government takes 41% of that nothing, here in Ireland) to an index fund 3 years ago.  Its money I don't need for the next 5 - 7 years so it meets my criteria for investing in the stock market.  I have read that since the stock market has been doing so well for so long that its just a matter of time before it adjusts downward.  Should I wait until that downward turn comes, or should I invest now.  I know predicting the stock market is like looking into a crystal ball but at the same time historically what goes up does come down again.
Would be interested to read your comments on this.



Steeze

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Re: Transferring a lump sum from a low interest savings to an index fund
« Reply #3 on: August 08, 2018, 06:50:33 PM »
Haha that was great!

theolympians

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Re: Transferring a lump sum from a low interest savings to an index fund
« Reply #4 on: August 08, 2018, 09:24:32 PM »
Lol!

Since I have been on this forum, this is an oft repeated theme here: to dump all at once or dollar-cost average. My wife had not put any money in her IRA this year. She came into some money and we just maxed out the contribution.

Another look back through the years I'd like to see are all the "I feel like a crash is coming and don't know if I should put money in the market." Or, "Should I pull out all my money?"

I'd like to know what they decided.......


Faramir

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Re: Transferring a lump sum from a low interest savings to an index fund
« Reply #6 on: August 09, 2018, 02:21:55 AM »
Time in the market vs timing the market.  You can't time the market.  I can't time the market.  The experts can't time the market.

No-one knows when it will drop or not, so over the long time horizon you have the best bet is to dump it in.

MustacheAndaHalf

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Re: Transferring a lump sum from a low interest savings to an index fund
« Reply #7 on: August 09, 2018, 09:24:13 AM »
The "correct" thing is less important than starting.  Take a fraction of your account that you are willing to transfer, and transfer it.  Move it to a bank/brokerage where you can buy ETFs or mutual funds, and make a purchase.  Knowing you will do that, pick the amount you're most likely to follow through with.

An imperfect start is better than a perfect but unused plan.  That even extends to which mutual fund you pick.  Even a bad mutual fund beats cash over most time frames.  So... start!