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It depends on what your plans are for the money. If this is long-term savings, I would invest it all into a balanced portfolio as soon as you can and forget ab
by jly 7y ago
It depends on what your plans are for the money.
If this is long-term savings, I would invest it all into a balanced portfolio as soon as you can and forget about it - there are many portfolio examples out there that only use a few 'total market'-style ETFs, as an example. I too have sat on cash at times during the last couple decades and it has cost me a lot of returns. Trying to time these things is basically like gambling and it will drive you crazy.
If you plan to use the cash in the short-term or it's emergency savings, I would personally keep it in cash to protect the principal. High yield savings accounts or short-term treasuries will at least provide some inflation protection.
- czbond 7y agoWhile I agree with this, timing can be really important. Large ETF's sell blindly when people take money out of the ETF's. So a sell on ETF, means quality and not quality stocks are sold. So don't buy ETF's on the multi year down...
- pedrocr 7y agoETFs, the index ones most people use anyway, just track the market and do so very closely. There's no market timing effect from buying or selling the ETFs.