How would you invest $500k at 30?

omosubi wrote: post #6

sergiotapia wrote: post #4

FZROX or VTSAX. Perhaps not in a lump sum right now, but that amount divided into weekly deposits to mitigate risk a bit.

Why would weekly deposits mitigate risk?

I read somewhere they used previous outcomes to simulate lump sum investments at the start, and weekly/monthly deposits.

End result wasn't that much different - the lump sum did do better, but not significantly. The weekly/monthly deposits was smoother.

Re: How would you invest $500k at 30?

#8

Post by TheDom » Sun, Mar 31, 2019, 12:34 AM UTC

omosubi wrote: post #6

sergiotapia wrote: post #4

FZROX or VTSAX. Perhaps not in a lump sum right now, but that amount divided into weekly deposits to mitigate risk a bit.

Why would weekly deposits mitigate risk?

The strategy is called dollar cost averaging: https://en.wikipedia.org/wiki/Dollar_cost_averaging

Re: How would you invest $500k at 30?

#9

Post by icedchai » Sun, Mar 31, 2019, 12:38 AM UTC

omosubi wrote: post #6

sergiotapia wrote: post #4

FZROX or VTSAX. Perhaps not in a lump sum right now, but that amount divided into weekly deposits to mitigate risk a bit.

Why would weekly deposits mitigate risk?

It’s mostly psychological. You dump 500k in and the market drops 10% next month, you’ll feel like crap. If you’re DCAing in you can put more in and feel like you’re taking advantage of the discount. Long term it doesn’t matter much.

Re: How would you invest $500k at 30?

#10

Post by ArtWomb » Sun, Mar 31, 2019, 1:01 AM UTC

>>> aggressive

BI provides a list of tech IPOs coming down the pike. No need to buy at all once.But a price-action-averaged, market-cap-weighted basket of securities from this pool could achieve 20%+ IRR through 2024

https://www.businessinsider.com/tech-startups-going-public-2...