Investment Timing Hand Wringing

[TGod]

I am a newish investor, I haven't hit the 50K mark yet, but will when I invest the 7K sitting in my account right now. I will be happy to finally hit a decentish milestone. I have everything in TD e series a la Couch Potato formula. 10% in bonds, the rest in stocks.

I have regular biweekly purchases being made and I don't really think about the market state where those are concerned.

But I have this little chunk of cash waiting to be invested and I find I am unable to pull the trigger on it, thinking I should hold for this mythical drop that is coming and buy in cheap.

I really want to get this in my RRSP this year to get another decent tax return next year and start the process all over again.

I know, I know, I shouldn't read those "The financial apocalypse is coming...again!" or the latest "Are you ready for a 4,000 point Dow drop". But I occasionally like to torture myself with what ifs. I also know from seeing it repeated over and over again that you can't time the market.

I also have my nay-saying husband's opinion which is to bury the money in the backyard (in a bucket so the worms don't eat it...obviously), instead of buying into the stock market which will screw us in the end (never mind that he has his parents as a great example of steady as you go investing).

Should I just buy in?

I don't have an emergency fund, other than maybe a month's worth of expenses, so I guess I could keep it for that, but I would really like to invest it.

Do most people just buy in when they get a "windfall"?

[matchewed]

Most people should invest their money according to their asset allocation as soon as they get a windfall. You have an investment plan w/ the Couch Potato method. So invest accordingly.

[Retire-Canada]

I've got $20K coming to me in a couple weeks. I'll turn it around and invest it in stocks the same day I get it.

I put $14K into an ETF as a lump sum earlier this year and it hasn't traded that high since so I have a paper loss on that one. It's annoying, but by the end of the year I expect it will be trading above the purchase price and I will just be glad I invested.

I just invest when I have free $$. I don't over think it.

Acknowledging that based on what you can know today is always the best day to invest is very liberating.

[rugorak]

What everyone else said.

But it may not be a bad idea to keep some of it for an emergency fund. I know for myself having 3-6 months in a higher yield savings account makes it much easier to just invest when I have it. I don't really worry if the market takes a dive after I invest because I know I can wait it out and it will recover. You may want to try and and see if it makes it easier to pull the trigger.

[StressLess]

What everyone else said.

But it may not be a bad idea to keep some of it for an emergency fund. I know for myself having 3-6 months in a higher yield savings account makes it much easier to just invest when I have it. I don't really worry if the market takes a dive after I invest because I know I can wait it out and it will recover. You may want to try and and see if it makes it easier to pull the trigger.

yeah i agree.  i love having the safety net of an emergency fund...helps me sleep at night and keep tax deferred savings on max

[Retire-Canada]

I don't have an emergency fund, other than maybe a month's worth of expenses, so I guess I could keep it for that, but I would really like to invest it.

Get a line of credit as your emergency fund. Keep it at zero as a quick source of cash if you need it at a reasonable interest rate. You'll be much farther this way than holding cash.