Never leave funds as cash in my accounts?

Office Hours
#1

shower thought of the day:
you highly suggest to always invest funds in your brokerage/retirement accounts, i.e. never leave funds as cash/reserves. if so, then how does one take advantage when the market dips (not necessarily “timing it”)?
or am I supposed to just continue with my monthly contributions and ignore any dips specifically (stocks on “sale”)?
thanks!

#2

Good question! I am very curious about the same thing!

#3

So Jeremy has a post on this topic
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Basically he says that it is very very difficult to time the market. He shows with past events that if you even wait a few days after a dip to invest you can miss out on substantial gains. Thus timing the market becomes even more of a gambling issue
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His plan is to make it easy for investors to become wealthy. Invest early and often. If you want to time the market, just know that it may pay off, or you may loose on gains.
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Investing monthly or bimonthly is a good way to keep money in the market. That’s what I do. I Have my Roth and my wife’s Roth IRA set up for auto investments weekly. If I have extra cash, I will throw it into funds and adjust my contributions.
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Hope this helps !

2 Likes
#4

Thanks, Chad! Makes a lot of sense!

#5

thanks Chad!
I do remember hearing it’s impossible to time the market.
I do regular/automatic contributions. Just curious if it’s still possible to take advantage when things dip in addition to my automated investments.

#6

I’ll cover this in tonight’s office hours (3/3/2021) with the recording available afterwards on the course site!

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