100K in IRA - Page 1

Posted: 2/21/2017 8:50:59 PM EDT

I have just under in an IRA from a previous e,mployer 401k sitting in cash. I realize the markets are at an all time high and not really sure what to do with this cash, t is not in any type of funds.

We have no debt , Roth IRA's are both maxed out, both 44 and decent jobs, combined salary over 110K

I was thinking of slowly buying into sme mutual funds or ETF's , like maybe $1,000 every month or more .

Any suggestions?

Thanks

39

Posted: 2/21/2017 9:06:33 PM EDT

[#1]

Build some more cars. I have seen me do it. I won't die rich, but I have no regrets.

I put my extra cash in an IRA. I have a stack that is liquid, but I am not sure if I want to get back in the market at my age.

Posted: 2/21/2017 9:18:17 PM EDT

[#2]

[I was thinking of slowly buying into sme mutual funds or ETF's , like maybe $1,000 every month or more .

Any suggestions?

Dollar cost averaging into the stock market is a good plan. Is the money currently invested in the stock market in the 401? Sorry see cash in your OP. I would do more like 5K a month into index funds based in US S&P 500.

Posted: 2/21/2017 10:16:58 PM EDT

[#3]

Dollar cost averaging is a bad plan.

Posted: 2/21/2017 10:20:22 PM EDT

[#4]

Quote History

Quoted:
Dollar cost averaging is a bad plan.

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Explain in detail please?

V

Posted: 2/21/2017 10:23:32 PM EDT

[#5]

Quoted:
I have just under in an IRA from a previous e,mployer 401k sitting in cash. I realize the markets are at an all time high and not really sure what to do with this cash, t is not in any type of funds.

We have no debt , Roth IRA's are both maxed out, both 44 and decent jobs, combined salary over 110K

I was thinking of slowly buying into sme mutual funds or ETF's , like maybe $1,000 every month or more .

Any suggestions?

Thanks

39

View Quote

Sorry op, i have no advice to give you other than you still have 20 years until you retire. What do you think the market is going to do in the next 20 YEARS?

Personally, im betting that it will be much higher than it is today but there will be ups and downs. The downs are a way for me to make more but I buy in every month regardless of what the market is doing today. Long term, it should pay off.

V

Posted: 2/21/2017 10:32:04 PM EDT

[#6]

The market is at a peak...but not all of it.

There are sectors...Oil/Gas for example, that are workable for entry right now.

Heck, CHK is a full on buy IMO. All they have to do is reinstate the dividend and it will double.

AR is decent...likely needs to dip a bit.

CDEV...likely to be flat for a bit, but has a long growth streak ahead IMO.

Plus, if you want to look offshore, Toshiba is going to be a good value for a long term hold as they are coming off some bad decisions that crushed their stock price lately. TOSYY.

Just my thoughts...not advice, take it with a grain of salt.

Posted: 2/21/2017 11:05:09 PM EDT

[#7]

Quote History

Quoted:

Explain in detail please?

V

View Quote

Read this

https://personal.vanguard.com/pdf/s315.pdf

Most of the time, the market is going up. DCA does not work when the market is going up. Eventually DCA = LSI because you are fully invested. So most of the time, DCA loses where LSI gains because the market is going up.

If you are buy-and-hold investor but feel there is serious downside risk, then be skittish. DCA would work if the market went down during the DCA period because you aren't putting your money in the market right away (duh). Or you can jump in the deep end of the pool and hedge your bets with some floaties like some leap puts. But then you are "market timing" which is what DCA proponents say they are trying to avoid.

Here's another article that explains it: http://jlcollinsnh.com/2014/11/12/stocks-part-xxvii-why-i-dont-like-dollar-cost-averaging/.

Posted: 2/21/2017 11:24:29 PM EDT

[#8]

The market was at its peak when I threw $51k at four mutual funds around 2nd week of November. I've made over $5k as of today. Unrealized of course, just letting them do their thing.

If you've got ten years until retirement, join in on the fun. It'll crash, but it'll recover. FLGEX and FDGEX have been good to me.

HDPMX has been awesome for me, but I got in at $9/share.

Posted: 2/21/2017 11:58:52 PM EDT

[#9]

Quote History

Quoted:

Read this

https://personal.vanguard.com/pdf/s315.pdf

Most of the time, the market is going up. DCA does not work when the market is going up. Eventually DCA = LSI because you are fully invested. So most of the time, DCA loses where LSI gains because the market is going up.

If you are buy-and-hold investor but feel there is serious downside risk, then be skittish. DCA would work if the market went down during the DCA period because you aren't putting your money in the market right away (duh). Or you can jump in the deep end of the pool and hedge your bets with some floaties like some leap puts. But then you are "market timing" which is what DCA proponents say they are trying to avoid.

Here's another article that explains it: http://jlcollinsnh.com/2014/11/12/stocks-part-xxvii-why-i-dont-like-dollar-cost-averaging/.

View Quote

If I read this right, we are talking about investing a large sum of cash over time. If so, I agree that dca is not the right approach. If this is what you mentioned, no argument from me.

V

Posted: 2/22/2017 12:06:00 AM EDT

[#10]

Quote History

Quoted:

If I read this right, we are talking about investing a large sum of cash over time. If so, I agree that dca is not the right approach. If this is what you mentioned, no argument from me.

V

View Quote

OP said 100k in cash.

Posted: 2/23/2017 1:23:00 AM EDT

[#11]

100k buys you a lot of blue chip dividend stocks. Many are still paying near 4-5%. Maybe DRIP and amass a large block.

Or you could take a risk on Amazon or Google that pays no dividend but ridiculously expensive at this time so 100k might be your only chance to take a crack. In a couple years you can sell and move into another stock if you wish.

You could venture into the unknown with the Snapchat IPO in a couple months.

With tax deferred IRA you could build a nice war chest from age 44

Posted: 2/23/2017 5:32:32 PM EDT

[#12]

Or you could park it in some index funds or ETFs and enjoy the joys of a strong market with low fees.

Posted: 2/23/2017 8:23:33 PM EDT

[#13]

Since the first of the year QQQ is up 9%, you'd be hard pressed to beat that, i would buy any pullbacks

QQQ chart

List of companys in the QQQ Etf

Posted: 2/24/2017 4:49:48 AM EDT

[#14]

Quote History

Quoted:
Or you could park it in some index funds or ETFs and enjoy the joys of a strong market with low fees.

View Quote

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