Too much held in cash, now what?

Hi there!

I am 43 years old and am embarrassed to admit that I have been guilty of committing the biggest faux pas…storing the majority of my money in savings accounts and CDs. I have always been aware that this is basically as useless as hoarding it under my mattress, yet (due to fear, feeling uneducated, complacency, etc) I’ve continued to do this decade after decade anyway :frowning:

About two years ago though, I grew some balls and finally DID begin investing by opening up a Roth as well as a couple different taxable accounts within Fidelity and Vanguard. I have been maxing out my Roth each year, and have automatic investments set up with both brokerage firms ($500/week in Vanguard) and ($1500/month in Fidelity).

Even though I am now finally in the passive investment game, I still have waaaay too much money sitting in various savings accounts (roughly 70% of my net worth) doing nothing. I have read so many times that the best and most reliable investment strategy is to DCA, but then as I stated earlier, I am aware that holding this much cash is a terrible option. I feel like I’ve already spent way too much time on the sidelines, missing out. It makes me sick knowing how much my money would have grown these past two decades had I invested it instead of hoarding it.

So given the fact that I am now in my 40’s and sitting on all of this cash, should I still just slowly continue to DCA, or should I still DCA but ALSO play “catch-up” by throwing big chunks of my money into the market so it’s no longer just being eaten up by inflation?

Any other recommendations with what I should do with my cash are greatly appreciated too! (Side note: I have no kids, and zero debt).

Play to your level of comfort. Personal Finance is personal so throw as much as you feel comfortable throwing in.

Lump sum as much as you can since time in the market is the key. But if $X/month is what makes you comfortable do that. Just do as much as your comfort level allows. You are the best handler of your money.

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@Chadmethner I love the reminder that personal finance is truly personal and looks slightly different for everyone.

@SFkitty Congratulations on opening a Roth and brokerage account and doing your research. I wouldn’t be hard on yourself for anything you did or did not do with past investments (trust me, we all have a long list of “should haves”). There is no time like the present to get started!

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