This post is just to get some outside encouragement and reinforcement.Over the last several months, I've developed a retirement plan and stategy and have spent the past several weeks moving the affected assets to Vanguard, where they now sit in a couple of MM funds (some tax deferred / some not). I'm ready to allocate.My problem is, the market has moved up during the time I've been moving money, and I would rather buy low. I know this is market timing (IMO bad) but it's still nagging. I know I can cost-average in, but I recall reading that about 75% of the time, just doing it is better. I also know that in the long haul, I'm spinning my wheels...and I am.I know I just need to pretend I'm an adult and just do it.ThanksAndy
So long as you think market timing is bad, there is not much you can do that will be right.
How about automating it? If Vanguard will let you, set up automatic monthly transfers to the funds you want to own over a 12 month time period. If they won't let you, then pick one day of the month and do it yourself (without looking at the market).Oh, and ignore Joel. He just like to p!ss in other people's cornflakes.
If Vanguard lets you set up automatic transfers, that's a great idea.If not, just do it, and dollar cost average in future years. On average, the longer you wait, the worse off you'll be - may not be in your case, but on average it will be true. And mentally, it's definitely true.
A few years ago, I got a lump sum from the sale of an apartment building and dollar-cost-averaged into QQQQ, SPY, and MDY. If I had just plunked it all in at once I would be ahead of the game.As you note, just doing it is better 75% of the time.You will drive yourself nuts trying to second guess exactly when to buy. Note: I may just be lucky, but almost every investment I have made over the past few years has immediately lost money in the 2-3 days after I buy, but has then come back to be profitable.
Just do it!I have stories of waiting, both good and bad! But why cause yourself anxiety. It may go down after you get it. It may also go down after you dollar average get it, hell it could just go the way of Enron. IT may go up!!!!!!!!!!!!!Did you do DD? or just guessed what funds? You made the decision to rebalance, rebalance.
Thanks All for the positive reinforcement!!!The final transfers should be completed today (Monday) or tomorrow, and as I've known all along, the real answer is ... just doit.Thanks,Andy
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