So I’ve been sitting on a large amount of cash for too long now and will be entering the market (low cost index funds, long term play). I know people say don’t time the market but is it not stupid to pump a bunch of money in to the current market when a dip seems imminent? Or should I just go for it and not worry about going in with a large sum at a high point?

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A dip has seemed imminent for the last 5 years but the market’s doubled over that timeframe.

Nobody can guarantee that the market won’t crash the day after you invest. But expected return is positive every day and you are missing out by sitting on cash.

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And if you’d bought the day before that dip you’d still be up 20%

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Instead of putting everything in a once, spread it out over multiple smaller purchases over a certain period. This will help you take advantage of price fluctuations, including dips. You can set up automatic purchases, so you can take off the pressure of trying to time the market for a dip. If you really want to try to time for a dip, save some aside for when you feel like low it's at a low, and you can add on top of your auto-investments.

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If you are honest about being it it long term, historically putting the entire amount in today had been best about 2/3 of the time. No idea about now. If it were me, I would do the entire amount now. If not, I would suggest half now and the rest monthly over 6 months or something like that.

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I would start dollar cost averaging in and keeping a lump sum of cash that you can drop into the market if there is a correction

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Was thinking about this exact same thing as I just got 100k ready to invest - I’m planning on putting it in all at once since I’m in it for the long term. Putting it in increments across a year doesn’t seem like it will make too much of a difference.

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I’ve always found some psychological comfort to being able to spread my investments out a bit through the year. You minimize the regret you’d feel if you invest right before a drop, or wait on the sidelines through a big rally.

If I get a big lump sum, I try to spread it out over at least two months, maybe longer (like up to 6 months) depending how much I think a crash might be imminent.

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OP, you need to understand why the market is at an all time high. We have printed an absurd amount of money and lowered interest rates (allowing banks to make up more money).

The result has been severe asset price inflation. This is the new normal and unless the US federal gov decides to suddenly balance the budget, we will keep going down this road of low interest rates + stimulus. Each dollar is worth significantly less than it has 1-2 years ago.

That said, there may be a correction, but you can never know the timing.

Not necessarily.

Inflated notional values = low yields.

All it will take is the possibility of better returns elsewhere (eg. Europe or Asia) and people will rebalance/dump their US assets.

How would I set that time interval though? Let’s say it’s 100k I’m putting in .. 25k on the first of the month for the next four months?

Given how volatile the market is I would put in more often (2k every Monday) to get to a better cost average

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