Getting the guts to roll Cash to investments

[frugalfinancehippy]

So we've got a substantial amount of money in cash we had planned to use as a down payment up until about a year ago but now we've decided we're not buying in this market. It's just too overpriced (million dollar fixer uppers in our neighbourhood).

My other half and I are having trouble rolling it into our investment account. We're doing the what if we lose it all panic which I know is silly given what we're investing in. Mostly blue chip Canadian stocks because of the tax advantages in Canada. Also some ETFs now that I have my quest trade account open.

I know it's just a mental game but any advice to getting over that mental block. Even if we keep some cash we still have way more than we would need in an emergency etc on hand right now. We do have investments but I've been using "new" money so there's no real feeling of worry putting it into the market.

Thoughts?

[deborah]

OP is in Canada, so I don't think the Roth, IRA... is relevant.

Look at http://forum.mrmoneymustache.com/investor-alley/investment-order-65299/ - there is a list of what people in each country should do with their money, which might help you with the plunge.

[iwantfreedom]

Hello, I had never bought any financial instruments 2 months ago. I was scared but overcame it (to some extent) by moving smaller amounts over from my cash savings. I have got used to seeing that money fluctuate daily and I have built some resistance.

[NoStacheOhio]

If the only way you're going to invest is to do it in smaller chunks, then that's better than sitting on cash.

[Eric]

I know it's just a mental game but any advice to getting over that mental block.

You're currently losing money to inflation every day.  Your current "investment" is a losing proposition.

[catccc]

In early 2014, I dumped (lump sum) about $120K cash I had been sitting on for 6+ years awaiting a home purchase into the market.  I am just sorry I didn't do it sooner.  Don't make the same mistake I did.  I reserved about $40K for a down payment, just in case, and I know this doesn't make much sense, but that $120K is at an allocation that is much more conservative than the rest of my portfolio, about 60/40 stocks/bonds.  That was 3 years ago, and hey, look at us, we still rent.  It was certainly an anxiety ridden decision to move it, but like I said, I'm only sorry I waited as long as I did.  That $120K is up to $149K today.  Again, I repeat, I'm just sorry I waited.

If it makes you more comfortable to DCA in, do that, but don't let another day go by without investing at least part of it.

Give JLcollins' stock series (okay, I admit I haven't finished it) but at least the first few parts, to give yourself a little confidence boost.

[Retire-Canada]

Thoughts?

Early last year I had over $200K sitting in my brokerage account in cash. I ended up dumping it into my investments in a few chunks over 2 weeks or so. It felt good to get the money invested and it's gone up in value significantly since then.

If you can't put the money in in one go then invest some each week until it's done.

If you've held that cash for a year you've given up over 20% return in the TSX and lost ~2% to inflation.