/biz/ - Business and Finance

Yes. I'm going to assume you have fucknone assets. If your time horizon is 20+ years, then fucking start investing already, fucknuts. If the market goes down, buy more. If the market goes up, buy more.

I'd pay attention to transaction costs wrt/ DCA'ing. If you were to, say, do 500$/month, at 5$/transaction that's -1% you're already at.

http://business.time.com/2012/11/15/is-dollar-cost-averaging-dumb/

>>158
1% doesn't seem too bad. If 1% is gonna make or break my strategy, I should probably rethink it anyway.

What I take from your post is that I should start putting in the regular monthly savings now, despite the bull market. But what about the previously accumulated assets? Again, lump invest (which your link says performs better) or DCA over 1-2 years (which your link recommends) or just keep as cash?

Your guesses about me are all quite correct BTW, good job. Thanks for the reply also.

>>162
I'd DCA it over no more than 12 months. The reason being, that "lump sum" is, in the end, fucking pitiful compared to the future of what you're going to put in. What I'm trying to say, is if you were to generate the same amount of savings in 6 months, then even if you were to invest before a 30% correction, you'd still catch end up DCA'ing down the difference to ~15%…. Don't take my calling your savings pitiful in the wrong way, you're well above the average fucking Americunt. Fuck we suck with money.

(Number fuckery)
Invest 5000.
Market drops by 30%, your investment is now worth 3500.
Invest another 5000, bringing total assets to 8500.
Market springs up 15%
You're now almost back to breakeven(17.6% from bottom would bring you back to breakeven)

30% crash is what we generally assume is kind of worst case scenario. Read Stocks for the Long Run to find out more about long term holdings and real money worth.

Head over to Bogleheads for more good investing advice.
http://www.bogleheads.org/wiki/Lazy_portfolios

Head over to MrMoneyMustache forums, Investor Alley to talk to more people about whatever worries you might have.
http://forum.mrmoneymustache.com/investor-alley/

>>162
Also, my point about 1%, is you can generally assume that the stock market will pay you back ~7% back per year. Losing 1% per year due to rotating your holdings and enacting transaction costs, and then throwing in taxes(15% long term capital gains, your tax rate if <1 year held) can seriously compound and fuck your return over the long run.

>>164
1.07 raised to 20th power(20 years) is 3.87 x your initial holdings
1.06 raised to 20th power is 3.21. Add another 10 years and the difference only magnifies.

>>163
>>164
>>165
Alright, that makes sense, thanks! Mostly concepts I'm already familiar with, but you put them together very nicely.

>>165
By the way, I'm not disputing your point, but I want to add this:

Firstly the return is impossible to predict precisely anyway. There will be a lot of noise, even over 20 years I'm not surprised if there's easily +/-2%. So, your final outcome is already affected immensely by random chance. Of course, noise is one way but fees are always downward.

Also, 3.21 is still "only" an 18% loss. This is how I justify "not caring" about 1% - but thanks to your post I realize I've underestimated how much of an effect it would have.

Get silver, the price is falling