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I'm feeling some paralysis about new money

Posted: Wed Aug 14, 2019 1:47 pm
by dualstow
It's easy to tell people to just keep plugging savings into all four assets, but I don't know if I can buy more EDV.
More gold....eh, maybe I should at least wait for a drop below 1500.
Stocks? Just rebalanced out.

I will likely do the cowardly thing and just keep too much in cash, and then regret it later.

There's no windfall, I'm just talking about periodic investable new money.

Re: I'm feeling some paralysis about new money

Posted: Wed Aug 14, 2019 2:21 pm
by Xan
You're overthinking... Yes, maybe the money you put in this month isn't a good time to buy bonds. Maybe next month's will be. It'll even out.

Re: I'm feeling some paralysis about new money

Posted: Wed Aug 14, 2019 2:22 pm
by ochotona
dualstow wrote:
Wed Aug 14, 2019 1:47 pm
It's easy to tell people to just keep plugging savings into all four assets, but I don't know if I can buy more EDV.
More gold....eh, maybe I should at least wait for a drop below 1500.
Stocks? Just rebalanced out.

I will likely do the cowardly thing and just keep too much in cash, and then regret it later.

There's no windfall, I'm just talking about periodic investable new money.
Make a plan to invest it slowly over the next several months... maybe over the next year.

Re: I'm feeling some paralysis about new money

Posted: Wed Aug 14, 2019 2:25 pm
by dualstow
Yup, agree with both of you. Best not to think too much about it and let it do its thing over time. Thanks.

Re: I'm feeling some paralysis about new money

Posted: Wed Aug 14, 2019 2:46 pm
by Kbg
Look at my avatar, and then say out loud three times: “It’s the portfolio that matters, not the assets. My assets simply provide the expected performance and risk profile OF THE PORTFOLIO.”

Yell the last three loudly as it relieves stress.

Re: I'm feeling some paralysis about new money

Posted: Wed Aug 14, 2019 2:54 pm
by Tyler
I used to worry about the timing of asset purchases as well, but over time I've come to understand just how little short-term purchase inefficiencies matter in the grand scheme of a long-term portfolio plan.

Pick your ingredients based on the recipe and stop tasting the baking soda.

Re: I'm feeling some paralysis about new money

Posted: Wed Aug 14, 2019 3:12 pm
by pmward
Yeah, for new funds, they are such a small percentage of the overall that I don't really worry about it too much. It does feel silly putting money into just about any individual asset right now, haha. I agree with kgb that it's the portfolio as a whole that really matters, and that's what I keep in mind every two weeks when fresh funds are going in (mostly into stocks right now as that's the lagging asset, which I feel almost positive are about to drop, but oh well).

Re: I'm feeling some paralysis about new money

Posted: Wed Aug 14, 2019 4:47 pm
by Kriegsspiel
Nothing cowardly about stacking cash.

Re: I'm feeling some paralysis about new money

Posted: Wed Aug 14, 2019 6:07 pm
by Tortoise
I understand your hesitation, ds.

A few months ago I realized that I was very overweight in cash in my taxable accounts, so I closed my eyes, clenched my fists, and bought a bunch of stocks, bonds, and gold on the same day to bring everything to a 4x25 PP. Pulling the trigger was tough, but I’m glad I did it.

Also, a few weeks ago I received a sign-on bonus for a new job and had to decide whether to leave it in cash or use it to rebalance my 4x25 PP. Again, I agonized over it for about a day but ended up putting it in the PP. And again, I’m glad I did it.

Come on in, the water’s fine! 8)

Re: I'm feeling some paralysis about new money

Posted: Wed Aug 14, 2019 10:27 pm
by dualstow
Great posts all around, guys. Thanks again.

Re: I'm feeling some paralysis about new money

Posted: Thu Aug 15, 2019 12:33 am
by Smith1776
I think it's perfectly natural to feel some trepidation towards at least one of the PP asset classes at any given time.

When all else fails, I think the safest option to calm any fears is to overweight the cash portion of course.

Browne did say (I think in Fail-Safe Investing?) that an acceptable alternative to the PP was just t-bills.

Better than putting it all on red. :D

Re: I'm feeling some paralysis about new money

Posted: Thu Aug 15, 2019 7:08 am
by sophie
I've got the same trepidation, because I was actually a bit underweight in bonds, and if I hit a rebalance band soon I will probably have to buy some.

So here's a thought: I'll buy the bonds in taxable. That way, if bonds go down which is what we all expect, I'll have a nice tax loss harvest to look forward to a year from now.