If I am able to put this much money in the stock market and leave it there, will I be set long-term?

[Anonymous]

I've got about $40,000 in stocks, and going to put $670,000 in ETF's. If I let this ride am I "set"?

[Makeushiver]

If you are going to put that much into an ETF you'd probably be better served by dollar cost averaging into it. Doing that will allocate the same amount of $ on a regular (often monthly) basis so you are buying a variable amount of shares each month, quarter or whatever period you choose. I'm curious about why ETFs rather than mutual funds but they are similar with ETFs being easier to trade. Make sure there is no load to anything you buy. Front load or back though some funds have a scaled down load that disappears after holding some $ there for awhile.
Beware of "experts" out there who love this sweet spot since it has many inexperienced investors in that particular demographic. Guys like Ken Fisher charge a fortune- often the same mount hedge funds charge which is 2% of every dollar they manage +20% of any profit they make. An absolutely insane amount of money from some pretty poor performance. Find an investment service that isn't too pricey but has been around for awhile, Zack's
is a good example. Dont bury yourself in information. The bulk of the profit made in markets atre made by people who can keep from trading emotionally. Many people hate selling any bad investments they make, often buying more of the stock as the price goes down. Pick a price at which you believe you will not want to own the equity if it goes there and use trailing stops or conditional, sometimes two part order tickets. If you can resist fear when everyone else is selling and exuberance when everyone is buying, you'll probably come close to matching the markets historical returns. Boring is okay. Dividend paying boring is better. Ask yourself if you would buy a stock at whatever price is at in real time. If the answer is no, get rid of it. Unless you are in retirement funds you can take short term capital losses whenever possible but hold your gains on for a year if possible. That makes the capital gains and dividends get taxed at a much better rate than ordinary income is. Stock market gains are considered passive income which is not a great IRS situation but never hold onto a stock for tax reasons only.
You didn't say how old you were and your biggest ally will be compounding interest which in the case of equities is re-investing any gains back into purchases of stock. The best place for that type of money is in a Roth IRA. If you hold onto a Roth investment for 5 + years all gains are tax free. Given how low our tax rate is now and the desperate need for unsexy infrastructure repair. Check tax laws for your income bracket to see if you are eligible for a Roth investment. I think the annual salary cutoff is still around $125,000. Any money you invest in a traditional IRA should be money you can live without until you are 55 1/2. If you invest in any traditional IRAor 401(k) & need to withdraw it prior to age 55 1/2 you will be orced to pay a 10% penaltyoff the top and then tax as if it were ordinary income on the remainder. There are some exceptions such as buying a home, medical expenses that allow you to withdraw some of that w/o 10% penalty but you're still on the hook for the income tax due.
Hope that answered some questions. If you have others I'll try to answer them as I see them but I'm not on here every day

[Asker]

36

I hate myself from missing an obvious entry point four months ago. I don’t know what was wrong with and now I’m most likely gonna buy at the all-time market high tomorrow.

[Anonymous]

😆 that's a question with not enough info. When do you want to retire? What standard of living? Where do you live? Did you buy or rent? If you bought how far are you away from paying it off? how is you current health? What is your families health history? All these are question s that hinge on the answer.

But just statistically speaking you're doing pretty good already.

I've always invested 15% of my income since I was 25. I try to worry less about my total and worry more about what I can routinely do to improve.

[Asker]

I'm 36. Well, it depends how one quantifies retirement. I still want to pursue a political career... I will keep working and live off of that, but like the idea that money that I don't necessarily "need" right now is going to work for me. I only wish I did it sooner. I don't know why I didn't.

[Anonymous]

It depends on what they are. If you let it sit in the stock market for 40 years, based on history it will go up.

[AI Opinion]

Investing $670,000 in ETFs, along with your existing $40,000 in stocks, is a significant step towards financial security. However, being "set" long-term depends on various factors like your lifestyle, retirement goals, and market performance. Diversifying across sectors and regions can reduce risk. It's essential to review your investments regularly and consult with a financial advisor to align your strategy with your goals. Additionally, consider aspects like inflation, withdrawal rates, and life expectancy to ensure a stable financial future.