Q: Good Morning 5i Team,
Retired income investor. Current funds generated keep my wife and I comfortable.
Will be inheriting a large sum in very near future. With ongoing Trump issues should I hold monies in reserve; dollar cost average or go all in.. Are we going to see a major downturn which would provide buying opportunities Your thoughts and insights on how to proceed would be most appreciated.
Retired income investor. Current funds generated keep my wife and I comfortable.
Will be inheriting a large sum in very near future. With ongoing Trump issues should I hold monies in reserve; dollar cost average or go all in.. Are we going to see a major downturn which would provide buying opportunities Your thoughts and insights on how to proceed would be most appreciated.
5i Research Answer:
Risks are heightened, but we don't think there is an imminent reason to expect a major downturn. With that said, every investors' base assumption should be that markets could see a 10% correction 'tomorrow'. While lump-sum investing tends to be the most effective (maximizing time in the market) we find that pyschologically, averaging in works best for most investors and would lean toward this approach.