Buying into the stock market

[LittleBill21]

I’m not seeing returns anything close to what is posted here.

your not going to if your in a target date fund, your close to retirement, your money is in the safest vehicle they offer.

I am in the most aggressive. Target date funds are for people who want safe no touch options, their returns sucks, i was out by year 2

 

[OffgridTractor]

I've always been told the idea if you have money to invest in the market is to buy in cheap but the market has been high now for several years , seemingly not a lot of low points to buy in, bottom line is I have a little money that has been setting in the market in cash bonds which is a really low performer and I have been toying with the idea of moving most of it over into some other funds that I am invested in that have performed well over the past few years but have been hesitant to because of that old saying that was beat into my head about buying in cheap. I'm 56 years old and can't see myself needing this money anytime soon, what are you guys thoughts ? Thanks in advance for any advice/opinions.

Just thinking about your comment of buying in cheap. If you buy in now, what you bought today will be 'cheaper' then it will be in another year. So you will have achieved your goal.

If you build on that, soon you'll be doing just fine.

 

[Carl_NH]

Currently two years to retirement so roughly 60% moderate or "safe harbor" which earned 7% last year then 40% more aggressive position "tech funds" - Semiconductor then S&P 500, which earned 15%. We don't plan to take any $ from our investments until the RMD starts at 73.

The 60% is what we need in retirement, and the 40% is the engine for discretionary purchases. We rebalance every year to maintain the 60/40 so this has put more $ into the safe harbor.

So lineman - with your age / timeline you have a fairly long runway - get some holdings into more aggressive funds like the S&P 500 and or Tech funds as you have time to recover if there is a dip. Also invest monthly or quarterly for $ cost averaging. investment.

 

[Oaktree]

• Don't read the news - investing should be boring. Keep buying, don't sell.

I was told in my teens buy and hold but it didn’t work well for me as I held all the way to the stocks being delisted… basically cured me of the equity markets.

Ultrarunner makes a good point. Individual stocks don't always go up, I've gotten burned a couple times myself on ones I should have gotten rid of before they tanked. As the song goes, you got to know when to hold 'em, and know when to fold 'em.
Be informed.

 

[OffgridTractor]

Ultrarunner makes a good point. Individual stocks don't always go up, I've gotten burned a couple times myself on ones I should have gotten rid of before they tanked. As the song goes, you got to know when to hold 'em, and know when to fold 'em.
Be informed.

Yep. It's basically the argument for ETF's. Individual stocks don't always go up, but the whole stock market usually does.

 

[JasperFrank]

Its sort of a Law that small investors just look for the "big return." Like they think they will win the lottery or something. Some do, but this is so uncommon as to be closer to a myth. We only celebrate the very rare winners. We don't look at all the other losers, which are the vast majority. It is so common to hear of a person that said, "I doubled down on this good deal," then hear they lost everything. Been there done that. Be aware of the whisper in your ear,... to get in early. This is why I leave it up to the experts now, and let them do the work and due diligence.

 

[ultrarunner]

When mom retired she converted her 401k to IRA mutual fund with a very sold record…

She never had a mutual fund and every month the statements showed a loss…

She lost 50% and said no more… pulled what was left and bought a 5% annuity and could sleep again.

 

[shooterdon]

If you are the type that looks at your holdings every day, stay out of the market.

If you panic when the market drops 15%, stay out of the market.

 

[ultrarunner]

If you are the type that looks at your holdings every day, stay out of the market.

If you panic when the market drops 15%, stay out of the market.

Yep I never looked taking the in it for the long haul at 18 with my Dean Witter account…

The problem is my positions all ended at zero except for one that is about half of what I paid many decades ago.

I admit I don’t have the temperament.

What I use to worry about is being over the FIDC insurance limit of 10k

Recent events or fairly recent bank failures have demonstrated the Feds willingness to make all whole even in excess of deposit insurance… Silicon Valley Bank and Signature

 

[Cycledude]

This discussion reminds me of the conversations I’ve heard while riding in Las Vegas Casino elevators