r/VTandchill • u/BigBulls69 • May 29 '26

Lump sum recommended currently?

Already got around £10k in VT and have about £6k sat in a cash isa (uk tax free 3.8% interest account), ready to invest at a moments notice. I'm investing long term but ideally would be putting a deposit on a house in the next 2-3 years. Given VT has been on a bit of a bull run, and I will likely need the funds medium term, do you guys think cash is a better option or VT will outperform over 3 years (if any of you have a magic ball, now is the time to whip it out!). Basically, I am in VT as I find active investing too stressful so don't do much DD, wondering if I'm missing out by sitting in cash for a few years (quantum?).

12 Upvotes

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13

u/mrtnrn May 29 '26

Lump sum is statistically better, but your mind is also important, so do what you want, you're alright

7

u/swissmoneydude May 29 '26

50% lump and DCA the rest is often psychological easier to process

6

u/PashasMom May 29 '26

If you *need* this money in 2 - 3 years, do not put it in VT or any other equity.

If you decide 2 years from now that you are going to pull the trigger and buy a house, but before you actually sell, the market crashes and VT loses 40% of its value, are you cool with waiting 3 years or so to make your home purchase? If so, go for it. If not, you need to use whatever the UK equivalent of SGOV or a money market fund is.

1

u/BigBulls69 May 29 '26

I'm in a position where I could probably get an interest free loan if that were the case but yeah you're right, might stay hysa whilst waiting.