Is it wise to start dumping everything I have into the market?

Submitted by Mattl54o t3_1004q1u in personalfinance

Right now I’m maxing out 401k and HSA, and I am no longer eligible to participate in a Roth IRA due to the income restrictions.

I have an emergency fund that would cover about 6-7 months expenses however ideally I want to use that for a wedding and housing downpayment in 2-3 years.

I am also investing $500 per month into a dividend portfolio and $300 per month into Bitcoin. $250 per month into a taxable brokerage.

Should I take all leftover money and shovel it into my taxable brokerage or dividend portfolio? Being that I have a good emergency fund? Or being that I want to use that in a few years, should I build that emergency fund higher to reflect a real fund?

With the market down so much, I’m super tempted to put every remaining dollar in, and have that emergency fund as worst case backup.

Thoughts?

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Default87 t1_j2fjvil wrote

> I have an emergency fund that would cover about 6-7 months expenses however ideally I want to use that for a wedding and housing downpayment in 2-3 years.

Your emergency fund should be separate from your house down payment or wedding funds. So if 2-3 years from now you want to buy a house and have a wedding, you need tos ave up for those goals separelty from the money you currently have for an emergency fund.

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Suspicious-Kiwi123 t1_j2fkdej wrote

You can still participate in Roth IRA via Backdoor Roth IRA procedure

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Rxpert83 t1_j2fj1cy wrote

It could keep further going down. Nobody knows the future.

Invest according to your risk tolerance

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MyOwnPathIn2021 t1_j2fjecj wrote

"A few years" is not really a solid timeline for the stock market.

Since we don't know where we're going, going all-in now is probably not wise. Cost-average in, but certainly buy now that it's cheaper.

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bradland t1_j2fx8za wrote

>however ideally I want to use that for a wedding and housing downpayment in 2-3 years.

I'd say that 2-3 years isn't a sufficient timeline to safely invest a house downpayment in the market. Over the long term 10+ years, you're almost certainly going to make money in the market by holding a broad-market index fund, but over 2-3 years, there is a decent enough chance that you could be down.

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CelticsWin7 t1_j2flocv wrote

No. Just dca into the market.

Do not time the market. There's no reason to put that kind of pressure on yourself.

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oledawgnew t1_j2fqxwm wrote

Why can't your Roth be part of your overall dividend portfolio or be used as a portion of your emergency fund? Don't understand why some people consider their retirement accounts objective different from their taxable brokerage accounts. Don't know your age but at some point in life you'll be looking at all of your accounts as one retirement portfolio.

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No-Resolution-4033 t1_j2fngku wrote

Prices could keep going down from here so here’s what I’m personally doing. 33% invested now to avoid potential fomo, 33% for more buys if we continue to go down and 33% for after we have made a bottom on the way up.

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[deleted] t1_j2frqq2 wrote

[removed]

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No-Resolution-4033 t1_j2fsks8 wrote

The issue then is, how do you know where the bottom will stop and reverse?

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Diamond_Specialist t1_j2fsyjb wrote

I was being sarcastic. Obviously nobody knows where the bottom is so your strategy is illogical.

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Aelsar t1_j2fv4nl wrote

I mean you could put in say 20% now, and if it drops another 5 or 10% drop another 20% in and so on. It's unlikely it's going to completely wipe out

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