Author Topic: Beginner question: is it a good time to invest in stock ETF now?  (Read 1157 times)

ilmuuu

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Beginner question: is it a good time to invest in stock ETF now?
« on: February 14, 2021, 03:18:27 PM »
Hello everyone,

I just started building my retirement portfolio at an age close to 40. I hope it's not too late... I have about $100K in savings accounts and would like to invest in stock ETF (such as VTI) and bond (such as BND), with a ~40% bond in my portfolio. However, recently it seems that the stock market has reached a high point. Would you recommend starting to invest now or later when the stock market falls down a little? Or for example, invest more in bond now, and later convert it to stock?

Thank you in advance for any suggestions.

ixtap

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Re: Beginner question: is it a good time to invest in stock ETF now?
« Reply #1 on: February 14, 2021, 03:22:12 PM »
There are people who have been waiting for the stock market to fall since 2013. No one can promise you it is going up, but you can't really bet on it going down, soon either.

They say the best time to plant a tree is yesterday. Just bite the bullet and go for it and hold on strong when the next crash does come. Hopefully, at that time, you will have still be putting more away.

Telecaster

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Re: Beginner question: is it a good time to invest in stock ETF now?
« Reply #2 on: February 14, 2021, 03:39:13 PM »
What @ixtap said.  Note bonds are also priced absurdly high at the moment as well. 

terran

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Re: Beginner question: is it a good time to invest in stock ETF now?
« Reply #3 on: February 14, 2021, 03:43:39 PM »
The market has a positive expected return, which means on average the market goes up more than it goes down, so on average you're better off getting the money in as soon as you can. Sure you might not pick the best time to invest, but you'll still do better over time than if you just keep waiting for the perfect time. Meet Bob, the world’s worst market timer to see why you'd still end up ahead even if you ONLY invested at market peaks (which would be pretty hard to do) as long as you don't also sell at the bottom.

BicycleB

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Re: Beginner question: is it a good time to invest in stock ETF now?
« Reply #4 on: February 14, 2021, 04:49:54 PM »
Market timing is really hard. So like everyone says, your odds are better to plunge in than wait, but there are no guarantees - you won't know the "right" answer until it's too late.

Fwiw, 40 is good in that if you keep your skills sharp, you can work and invest year after year until you reach your goals. Experiencing a crash early during that process is good because it means you'll invest at better prices for a while. Allocating your existing savings is a move that you simply do to get a further edge on that as best you can. Good luck!

The real value is in committing to wise action. It's hard to control results, but easy to control your actions. Over time, wise action will pay.


RWD

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Re: Beginner question: is it a good time to invest in stock ETF now?
« Reply #5 on: February 14, 2021, 06:01:38 PM »
Since you still have a long way to go you should absolutely be going heavy into stocks. A market crash may be the best thing (financially) you could hope for at this stage of accumulation.


There are people who have been waiting for the stock market to fall since 2013.
Indeed.

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ilmuuu

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Re: Beginner question: is it a good time to invest in stock ETF now?
« Reply #6 on: February 16, 2021, 07:30:16 AM »
Thank you for all your suggestions and kind words. I will start now.

cool7hand

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Re: Beginner question: is it a good time to invest in stock ETF now?
« Reply #7 on: February 16, 2021, 08:32:59 AM »
I don't remember the specific numbers, but in the Tony Robbins book, Money Master The Game, he talks about how most market growth occurs on only a handful of days. The only way to make money is to have your money in the market. Trying to time when to get in is a losing proposition, if only because you miss the real opportunities.

 

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