[Edward]

Still a novice here, and only a VTSAX investor as of yet, but wanted to ask this question: If you’ve got money to throw in the ring, is it just better to wait until a drop, even a small dip, before doing so?

“Many investors often wonder whether it’s more prudent to wait for a market dip before investing in a broad index fund like VTSAX (Vanguard Total Stock Market Index Fund).

Given the unpredictable nature of the stock market, is timing the market worth the potential risk, or is a ‘dollar-cost averaging’ strategy more reliable for long-term growth?

For those who have experience with VTSAX or similar funds, what has been your approach: waiting for market downturns to buy in, or consistently investing over time regardless of market fluctuations?”

[Diya]

Time in market vs timing the market always

[Kenny]

Invest when you have the money, preferably in an automated fashion. Trying to time the dips is nearly impossible.

[Robby]

Time in the market is better than timing the market. You cannot predict the future.

Studies have shown that DCA underperforms lump sum investing. It doesn’t matter how expensive you think the market is.

[Bil]

Of course it would be better. Unfortunately you don’t know when the market is going to drop.

It trends up over time, so this could be the lowest it’s ever going to get.

[Kristen]

If it’s part of your planned retirement money it’s best to just get it invested.

If it’s fun money and you are buying individual stocks I buy more of a dip or try to anyway.

Otherwise my retirement money goes in as soon as I have it

[Ron]

Drop it in today by dollar cost averaging over the next 12-months. Mkt is very toppy…

[Ellen]

I dump a little money in every paycheck and if there is extra at the end of a pay period…even if it’s only $25.

If I see red, I consider them on sale.

[Author]

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