No. of Recommendations: 3
I have one question -- and this applies to anyone in your situation of being older and having a lump sum to get working for you -- so RAY, would you recommend invest that sum over the next two years or so at a fixed amount on a fixed day? Or do you think it would be best to invest it all right now, regardless of how highly valued the markets are currently?

Not RAY, but...

1. Figure out the asset allocation that best suits your age/goals/temperament.
2. Put your money in that.

If the money will be needed in 3 years, you should probably have it in cash / super short term bonds.

If you have some time, the allocation will include some US stock, foreign stock, maybe REITs, bonds, possibly some other stuff but not necessarily. The stock market will go up and down no matter when you start. So, you get to share in the gains and also avoid losing huge if there's a crash.

There isn't a "trick" to taking a tiny bit extra risk but getting the return of someone taking a lot of risk. Well, the only "trick" is to start at 24 (like I did) and plan on riding out any ups and downs over the first 30 years. But any method or scheme is arbitraged away, meaning if there's an outsized possibility for gain at low risk, that thing's price gets bid up to where it's on par with the rest of the risk-reward scenarios. Every big recovery is looked at as obvious...in retrospect. But at the time, people were losing their minds. The same with booms--if the market tanks, it will be obvious (later) that things had peaked; but if the bull has more room to run, it will be obvious (later) that the Trump tax cuts along with Obama setting the stage for a Goldilocks recovery were responsible and how could anybody have missed that?

People ask, "What should I do with a $100K inheritance?" I say, why try to guess what might happen? Allocate your resources so you do OK (that is, have the highest likelihood of reaching your goals) regardless of external events. So, if your asset allocation was prudent for your savings of, say, $450K, why wouldn't it be just as good for $550K?

All that said, a lot of people think they have a lot of risk tolerance when things are good, and discover they're not immune to panic when things are bad.
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