What current market high do you have in mind? After inflation, stocks are below where they were in December 2021. Sideways for 2 years isn't exactly irrational exuberance. Shiller PE isn't suitable for planning your investments so I wouldn't obsess over it.After reading Bogleheads book, I want to get started but I am a early retiree and I am afraid that my stock will cut into half in a year or two into my retirement.
On high level, I have 40 time my annual yearly expenses with enough insurance to take care of health emergency and with no debts.
May I know if anyone have similar fear like me?
And how you overcome it?
I am not comfortable to buy lump sum for a 50/50 portfolio at current market high.
If I use DCA, may I know how long is the optimal period? DCA Every month for a year, two years or three years?
So much fear to get started at current market high. Shiller PE of 32,
50/50 is a conservative allocation but if you can't stomach it, consider 80/20. Or go all bonds/CD ladder. Just know that so called safe investments like bonds raise other risks, like losing pace to inflation and not having enough in the long run. What happens if bonds/CDs start paying 1% again? Will you start to regret not holding stocks?
Statistics: Posted by z3r0c00l — Wed Jan 17, 2024 6:25 am — Replies 3 — Views 341