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EY1- Are you sure that’s right? Your rule seems to indicate you should invest less in bonds as you got older, but I thought you should invest more, since they’re stable. Invest in the riskier stuff when you’re younger.
It is very hard to "time the market" I heard a very very crude rule of thumb is to subtract your age from 100 to determine what % to allocate to bonds in your portfolio. This is assuming you're not planning on using this money for a long time.
Don’t invest what you’re not willing to lose. Other than that, enjoy!
Short the VIX
With interest rates rising I wouldn’t lock into a CD for longer than a year
You can also go high yield savings account like Synchrony or Ally, and pull in close to 2% instead of the .06nothing% from a checking account
If you are young and investing for the long run, start dollar cost averaging into the market. When I started in 2015 people were calling the top of the market. If I listened to them I would have missed out on several thousands of dollars in gains. Pick a mutual fund so you can set up automatic investing. Put the minimum into the find to buy in, then start auto contributing whatever amount you want. I like VTSAX for total US stock market exposure.
But I do feel like it’s a bad time in the market. I also don’t know which funds to put this 14k in.. maybe just a S&P fund with a little going to a bond fund to hedge risk ?
At this time I would put that into a CD so when market settles then you can invest and get better return but that’s just me.
Hold the cash. Wait til the market dips or post recession, etc to make a personal investment in etf or individual stocks
The rule of thumb is that you should have 4-6 months of expenses available in cash in case of emergencies. I’d hold onto what you have. Maybe put it in a money market account to earn a better rate than savings. You don’t want to get into a situation where you need the cash quickly and have to sell securities at a loss to get it.
A CD seems ultra conservative. What is that like .5% return?
Depends on length of time. You can get a 5 yr CD with 3%. You can even get as high as 2.4% on a 1 yr CD
Fund to buy in***
Re: CDs, you can always go in and get out at anytime. You just lose interest not yet earned
Also, Ally has no penalty CD which offers around 1.85% and there is no penalty if withdrawal is early and you get the interest up to date of withdrawal as long as the CD was active for 6 days or longer.
Are there low risk bond etfs that have higher yields than CDs? I’d be willing to take more risk than a CD.