What are your thoughts on the market? My emergency fund is getting out of control, but think it’s worth waiting to go in because the market is so high

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Rule #1) NO ONE can time the market. If they could they'd be the most famous person in the world. This bull market could last another 3 weeks or 3 years for all you know. So far the first week of 2018 has returned huge gains. If you've kept your money on the sidelines for the last year+ you have missed out on 20%+ gains alone.

Rule #2) Unless you need the cash in the short term (i.e. Less than 5 years or 10 to be conservative) there's no reason not to invest it now. Keep whatever emergency fund makes you feel secure (6 months is the standard) and invest the rest in stable portfolio that matches your risk tolerance. Feel free to set aside 5-10% for more exotic stuff (crypto, new tech speculation, etc).

Rule #3) Know your tolerance. If the thought of losing 40% of your account value within a month sickens you, invest in bonds and CDs. Otherwise, go in stocks and just let it ride. Don't panic sell. The only people who sell at a loss is someone who didn't follow these rules.

Rule #4) NO ONE can time the market. There is no such thing. Stop trying.

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Ok I just transferred $90k to vanguard. Thanks

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I know the feeling. At this point my "emergency fund" has grown to a solid two years worth of expenses. It does feel nice to have that amount of "fuck you" money in my checking account, but would rather put it to work at better valuations.

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The sheer number of people still on the sidelines gives some hope to this bull having legs for a few more years. I divested 50% earlier this year with the prospect of buying a new house in a few years because it was the “correct” thing to do. Just shows you can never know what the future holds. Making 20% off AMZN in 5 months helped lessen my pain though.

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If you are worried then just put in stop losses

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The more people with cash on the sidelines, the longer this bull market will last! :) But seriously, get in the game. You'll be fine.

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You gotta get in sometime. Throw it in an S&P index fund if you want something that is lower risk.

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Low volatility and a one sided market right now. Nothing wrong with having alot of cash on the sideline

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Yeah that’s how mine is. I keep catching myself trying to time the market. My thoughts are that is cash I can’t afford to have cut in half in a matter of a few weeks so I keep hanging onto it. I may just throw it in a 12 month CD since it’s most likely going towards a down payment on a house

My S&P ETF is absolutely crushing it for me this year. 10.7% return since opening it in May of 2017. How long will it last?

Rule #5) The younger you are, the more risks you should take.

Your post is awesome @SA1

EY 1, how can you say that s and P index fund is lower risk? Do you understand the make up on the fund and the small amount of companies responsible for much of the gains?

hopefully you will diversify within vanguard funds too OP

Where to start

I just bought 2 bitcoin too. 😎

I keep waiting for it to skyrocket 😟^

You dropped $28k on bitcoin?! Whew boy you got some cojones. Best of luck

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