stay the course wrote:
Flagpole wrote:
Nope. You ALWAYS have a set minimum that you put into the market regardless of how the market is doing. IF the market drops a lot, and IF you have extra (you do never know when you might come into some extra money), and IF you want to, put more money in. My CORRECT philosophy doesn't allow for behavioral issues (changes). You must ALWAYS be doing 15% or more into retirement accounts and then working on getting rid of the mortgage. Also, you are attaching intelligence to this, and there absolutely isn't any. If you (not YOU, but anyone) buy when the market dips and then the market goes back up (because it will) and you feel like a genius, then you have something wrong with you.
Hmmm, I’m stating something very similar as you, but you somehow make it sound like what I’m saying is totally wrong and you’re correct.
Maybe I wasn’t clear in regards to staying the course with long term plan. No matter the market condition, you stick to your long term plan and continue to invest no matter the condition.
Im not at all for buying when it dips as if you did have the extra cash to invest, you should be investing that amount. That’s why I mentioned your strategy to buy when it dips is for people who have already won the game and have achieved financial independence to have that kind of cash just lying around.
Yes, we mostly have common ground. My "Nope" was in response that you said my advice there was for people who had already reached financial independence. Where we differ is that it is more than ok to have extra cash lying around. If you are already doing 15% or more into retirement accounts, you do not NEED to do more. I actually do more, and I have no problem with people doing more, but you don't HAVE to. You don't HAVE to be investing every last extra penny. Now, if you want to retire by age 40 with $4 million dollars, you might have to, but that's not for everyone.
To emphasize the common ground...yes, long term is the goal. I agree.