Just put in VOO.. then kill yourself. Just kidding on the 2nd part lol. But seriously, just park it and forget about it. Market timing is all bullshit.
Exactly. Really tired of all these people saying "don't do it now, bad timing". Like WTF? If not now, then when? THIRTY PLUS FRICKIN' YEAR TIMELINE! HELLO! SHARKS WITH LASER BEAMS!
even for the passive put it away money, you need to manage/review regularly. index is very simple, p/e times eps, you google the means for both, come up with a fair valuation, then sell puts to that level for entry.
If you have 30 years, yes, definitely put it into the S&P. The challenge will be for you to hold that position through market ups and downs, good and bad news and events. Don't be tempted to get into market timing or trading strategies with that long-term holding. Set it aside and let it grow unmolested. If you can do it, you'll be well rewarded for your patience. And no matter what you read here, I can assure you that none who have responded to you have beaten the S&P over 30 years.
When many shares in the index don't trade at crazy multiples anymore. Your comment is akin to buying tulip bulbs for a million, each. What could possibly go wrong? The capitalist system is utterly broken. And a solution needs to be found. The entire economy is at an absolute breaking point. Anyone who now puts his entire life savings into the market at at once is running an extreme risk of a decade of draw downs and that is a wildly optimistic outlook on the future. Nutcase.
Not 30 but I have since I changed strategy 20 years ago, without the huge drawdowns. You will have to take my word for it as I'm not going to the trouble of getting an audit to prove it. You can backtest a simple ma cross startegy on a weekly chart using a 10 and 30 sma.
Max IRA contribution is $6500. Max 401k is $22500. If he's not already maxed out that's they first thing I'd do. And I would keep much of the balance in short term treasuries while waiting to move it into tax advantaged accounts. (At least while short term rates stay up) Missing out on a little potential appreciation is probably well worth it to let that money grow tax free for decades. He's only going to be able to move in ~10% each year. But I also think P/E matters and do not like the idea of piling into super high P/E garbage just because everyone else is doing it. Market timing can be hugely important, look at Japan or the great depression. Blindly ignoring fundamentals is risky. Piling an entire nest egg into a single fund in a single account in a single market order transaction regardless of the relationship between price and earnings seems dumb to me. Not taking advantage of the potential tax savings in designated retirement accounts is bonkers. At least break it up between several accounts and funds. Then use limit orders to take advantage of price variation.