Author Topic: Help I screwed up  (Read 867 times)

show me the money

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Help I screwed up
« on: June 11, 2021, 06:51:29 PM »
Hello all,

I need help, i screwed up royally, the end of 2019, my old employer was moving their 401K to a new company, and I decided to transfer it to my vanguard as an IRA rollover. at first I felt really good that it missed the 2020 market crash, but like an idiot i never actually used the money to purchase shares of anything. i am so mad at myself that i missed out on huge gains over the course of 2020, and that money is still just sitting there as a rollover.

i am so fearful that the minute i dump it into my IRA that has VTSAX that the market will tank, i have also been waiting/hoping for a drop to dump it in, even though i know i should not try to time the market.

i feel so dumb. what should i do at this point?

Thank you all

subhobroto

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Re: Help I screwed up
« Reply #1 on: June 11, 2021, 06:55:47 PM »
i am so fearful that the minute i dump it into my IRA that has VTSAX that the market will tank, i have also been waiting/hoping for a drop to dump it in, even though i know i should not try to time the market.

You can either let emotion control you or math and probabilities. Either will get you what you want out of it so which one do you value more?

Zamboni

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Re: Help I screwed up
« Reply #2 on: June 11, 2021, 07:31:37 PM »
I know someone else who had a similar thing happen this past year. Whoops! Just bite the bullet and get in the market where you wish it had been all along.

ChpBstrd

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Re: Help I screwed up
« Reply #3 on: June 11, 2021, 10:28:03 PM »
Taking lumps like this sucks, but sometimes it's the only way to learn. Invest it all in VTI on Monday, and bear in mind that there have been multiple minor corrections during that time you wish you had been invested. Look at August 2020 for example. If you think 2018-2019 was a good time to be in the market, look at December 2018.

The game is this: You get paid in the long run to watch a chart zig zag in the short run.

MDM

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Re: Help I screwed up
« Reply #4 on: June 12, 2021, 07:14:27 AM »
I'd guess you can probably do better than the world’s worst market timer.  What do you think?

MustacheAndaHalf

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Re: Help I screwed up
« Reply #5 on: June 12, 2021, 07:22:41 AM »
You don't have to invest 100% of a lump sum all at once.  Would you be more comfortable splitting in 1/3rds, and investing 1/3rd every month or so?

theolympians

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Re: Help I screwed up
« Reply #6 on: June 12, 2021, 08:24:57 AM »
Consider you asset allocation. If you were happy with the past allocation, do the same. If not, now is the opportunity to adjust. Then get it back in the market ASAP and don't look back.

Zamboni

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Re: Help I screwed up
« Reply #7 on: June 12, 2021, 04:50:20 PM »
Lol, love the link about Bob, the world's worst market timer.

show me the money

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Re: Help I screwed up
« Reply #8 on: June 13, 2021, 08:58:49 AM »
I'd guess you can probably do better than the world’s worst market timer.  What do you think?

This was a great read, Thank you