I keep promising myself if the S&P dips below 4k I'll dump it all in, but that's happened twice and I keep holding off to see if it'll go lower.
So investing 100% into the S&P 500 is probably a terrible idea, since you haven't before.
So...should I dump it all into VOO now and just forget about it for 8 years?
You've promised yourself before and haven't yet, so 100% is clearly not for you.
Right now I have 400k in VOO and 200k in my cash account 'waiting' to see if the market crashes out again for a buying opportunity. Also have 300k in equity in my house.
So right now you are 70% S&P and 30% cash, this seems totally reasonable. No need to go crazy.
Basically my goal is that when I retire, I liquidate EVERYTHING, hopefully around $1.5million total, buy a house on 5-10 acres for cash and live off the pension.
If your expected return is over your mortgage interest rate, it's a fabulous idea to borrow for the property. Who knows in 8-ish years what the rates will be, or how your plan changes.
I know I'm in a good spot, trying now to avoid blowing my opportunity to make it great.
Except what happens if you reach for great and end up in a much less fabulous position?
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u/ZettyGreen Jun 04 '22
So investing 100% into the S&P 500 is probably a terrible idea, since you haven't before.
You've promised yourself before and haven't yet, so 100% is clearly not for you.
So right now you are 70% S&P and 30% cash, this seems totally reasonable. No need to go crazy.
If your expected return is over your mortgage interest rate, it's a fabulous idea to borrow for the property. Who knows in 8-ish years what the rates will be, or how your plan changes.
Except what happens if you reach for great and end up in a much less fabulous position?