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Started by edward3030, August 28, 2018, 06:48:14 AM
Quote from: YoungAndTheInvested on September 14, 2018, 08:47:05 AMBecause you're so young and have relatively little at-risk, now is a great time for you to invest if the investing objective is to accumulate wealth for retirement. With a longer time horizon, you shouldn't have any fear of investing for the long-term in any economic environment. Using investing during the last recession as an example, if you had the misfortune of buying an S&P 500 index fund the Friday before Lehman Brothers went bankrupt you would've lost 46% over the next 6 months. On the other hand, if you bought that day but never sold, you'd be up 185% at the time of this post.The biggest determinants for wise investing inevitably come down to:1) Time spent in quality, low-cost, diversified investments (i.e., index funds)2) Time horizon for which you are looking to invest3) Discipline to continue making increasing contributions each yearAs I've mentioned above, if this money is meant for long-term investing, timing won't matter as much as time you spend in the market. I, for one, intend to continue making increasing contributions to my accounts as I age because I know stocks have historically provided an excellent return thanks to the power of compounding.I talk more fully about these dynamics on my blog in these posts: https://youngandtheinvested.com/2018/09/06/investing-do-less and https://youngandtheinvested.com/2018/07/21/power-of-compounding/. Sam also has a lot of great content speaking to much of the same. I strongly advise you to check out what he has to say in more detail.
Quote from: YoungAndTheInvested on September 14, 2018, 10:28:18 AMI saw the same number bandied about on Twitter from Ben Carlson. I thought I'd verify it before including it in my post (https://youngandtheinvested.com/2018/09/13/millennial-interrupted/) this week using this calculator: https://dqydj.com/sp-500-return-calculator/I use the 10-year window from end of month September 2008 to the most recent trading close with dividends reinvested and no tax consequences (so, in a tax-advantaged account).I'd post a screenshot of my results but I don't think I can? I'm hitting the "Attachments and other options" link below but can't seem to find an option to upload the image. Regardless, if you just use the default settings when you land on the calculator, you will see the TSR score is ~190%. With the market's increase the past two days, that likely affected the 185% number I used in my blog post and above.
Quote from: edward3030 on August 28, 2018, 06:48:14 AMI'm a recent college grad (23), now working full-time. I recently began investing in ETFs on platforms Wealthfront and Acorn, and have a bit of money in Fundrise. As the market continues to hit extreme highs, and as mentioned often, that we may be around the corner of a potential market correction, is it wise for me to continue to invest heavily (about 30% of income after taxes, expenses and savings) into ETFs on a bi-weekly basis, or should I sit on the side lines for a bit, save cash heavily and jump in when the market hits a drop/correction; instead of investing now at overvalued and high prices?