Invest $75K in mutual funds NOW or wait a few months?

[Anonymous]

We have $75K left over from a recent home sale. I plan to invest it in mutual funds but I am worried about buying in while the market is this high. How would you attempt to mitigate that risk? My father in law thinks the market is heading for an adjustment (though not crash) so he thinks I should sit on it for a few months (in MM) but my finance career older brother thinks I'd be fine investing now - and says there's just no safe bet. I'm stuck somewhere in the middle mentally. Thoughts?

[Anonymous]

Invest.

[Anonymous]

If you're in the middle of the two positions, then put it in in sixths each month for the next six months.

[Anonymous]

If you're putting it in the market, presumably you won't need it for 5+ years anyway. Do you want to take the chance of sitting on the sidelines that long?

Alternatively you could do something like invest 1/2 now and dollar cost average the rest over the next year.

[Anonymous]

I would put it in money market account and sign up for purchase every other week over next few months. It’s better to spread your purchase when market is this volatile.

[Anonymous]

Well the answer is pretty obvious if you can just predict the future.

[Anonymous]

OP here. I'm inclined to invest it in chunks over the next 6 months. Just trying to weigh my options. Thanks for the input.

[Anonymous]

I was also going to suggest splitting it over X number of months (6 or 12). Dollar cost averaging is a smart move no matter what you think the market is going to do.

[Anonymous]

Anonymous wrote:I was also going to suggest splitting it over X number of months (6 or 12). Dollar cost averaging is a smart move no matter what you think the market is going to do.

16:05 here. I’d do 12 over 6

[Anonymous]

I was in this boat about a year ago. I decided to dollar cost average over 6 months. Missed out on some of the amazing returns last year, but I was just to afraid to do anything differently.

[Anonymous]

Another vote for dollar cost averaging.

[Anonymous]

Anonymous wrote:I was in this boat about a year ago. I decided to dollar cost average over 6 months. Missed out on some of the amazing returns last year, but I was just to afraid to do anything differently.

Except 2018 is nothing like 2017.

[Anonymous]

Anonymous wrote:I was in this boat about a year ago. I decided to dollar cost average over 6 months. Missed out on some of the amazing returns last year, but I was just to afraid to do anything differently.

Me too...

[Anonymous]

Anonymous wrote:

Anonymous wrote:I was in this boat about a year ago. I decided to dollar cost average over 6 months. Missed out on some of the amazing returns last year, but I was just to afraid to do anything differently.

Except 2018 is nothing like 2017.

Of course. And know one knows the future ever. Your point is...

[Anonymous]

Dollar cost averaging isn't really an effect method to deal with risk. If your risk tolerance isn't that high (meaning you don't want 100% in stocks), then find some other asset allocation and use that instead. You might go 50% stocks (Vanguard total stock market) 50% bonds (Vanguard total bond market) for example.