Market is at an all time high. I have more than half my bonus left over. Should I buy Vanguard ETFs in one go? Should I dollar cost average? Or is there a better strategy? Would love your thoughts!

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If you look at history, the market has hit an all time high ZILLIONS of times. Don’t look at whether or not it’s at an all time high. Look at whether it’s over valued. Even then I wouldn’t NOT invest. I would simply invest in more conservative mutual funds if you’re worried about a crash.

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I think studies suggest that time in market beats timing the market. But dollar cost averaging always secures you from buying just before a sudden crash. I would go that route myself.

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Or you dollar cost average and the stocks keep increasing, only to crash after your last investment

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2008 crash was 40%. I chickened out and didn't invest for next 5 yrs and lost on biggest gains in history. Even you loose big markets will come back. But don't invest in one sector or one fund. Diversity is key to sustain loss

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Flip a coin

helpful

Do you have any investments yet or will this be your first entry?

If you have other investments, use this money to diversify a bit. My spouse and I do 40% foreign growth markets, 40% S&P tracker, and 20% bonds. That’s just an example so feel free to choose something else. But right now our foreign growth is pretty low compared to the S&P. So choose whatever mix you’d like, and buy what your missing.

So for ease, let’s say you have 5k to spend, and you already have 5k invested in the S&P. Let say you just want to do 80% S&P and 20% bonds. With your 5k, you’d buy 2k of bonds and 3k of S&P so your ending mix is 80/20.

helpful

I am wondering the same thing.

Yeah I started later in general than I should’ve but I must’ve had a good portfolio because my hit was low during the last crash. Diversify

Don't time the market

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