6 Comments
Dec 10, 2022Liked by Daniel May, CFP®

I have a good plan and just keep investing every paycheck. Over time it has grown to a happy nest egg.

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Dec 9, 2022Liked by Daniel May, CFP®

Thank you, Daniel. The information you shared is a good reminder for us to remain calm and steady with our investments. As a general rule, I like to buy things when they're on sale, shares included. Load me up!

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Dave Ramsey says to keep investing no matter what the market does. Having no debt or loans except a mortgage and a fully funded emergency fund makes it much easier to handle whatever the market chooses to do.

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Hi Daniel, thanks for the write up, I am long term bullish.

How much cash would you recommend on hands in case market goes down further (end of the bear market rally)?

I meant additional funds beyond the 6 months emergency reserve.

Thanks.

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author

Thanks Cong! If you have additional cash on-hand, it can be worth deploying when the market is down. However, saving up cash specifically to use when the market is down can cross into timing the market. Generally, it is better to get your money to work as soon as possible.

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The flipside is that it matters greatly how much you are DCA’ing relative to how big your portfolio already is. If you have a 7 figure portfolio and you are dca’ing a few k a month, that’s not really going to move the needle.

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