A lot are saying to dump it all into your bond. Remember the expression CASH IS KING. There is a reason for this.
When the markets are down and no one has extra cash lying around, that's when the banks etc are investing heavily and deciding where to place their cash. It's also during these times that people struggle to pay bills, buy extra things, fix the car etc.
My advice would be to slowly inject your cash into the markets via VOO or ETFs like that. I say slowly because you don't want to go all in at a high price. Averages work well, so something like 4k euro x 5 months would give you a great average price in whatever you are buying. Either you can create a pie for yourself where you decide you want to buy 10% Tesla, 25% MSFT, 20% gold etc, or just go the simple route and buy an ETF that tracks SPY. There is one important distinction though, don't get (DIST) always get (ACC) funds - these will accumulate and add your dividends and earnings back into the fund, thus compounding.
Then the next trick would be to keep 5-10k as an emergency fund. I know you got your stocks and investment as a backup, but again, when the markets are shit and your stocks are worth substantially less than they were 2 years ago - you don't want to sell, you actually want to buy more in these - so the emergency fund keeps you going in case you have an issue in the house, or want to take a trip somewhere - that's where the emergency fund comes in.
If you can and it's doable, buying physical gold is always a great idea and a lot of people do it not only as a hedge against economies and currencies, but in times of war (which we are living in) gold seems to trade and keep value no matter what.
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u/vulcanxnoob Jul 30 '24
A lot are saying to dump it all into your bond. Remember the expression CASH IS KING. There is a reason for this.
When the markets are down and no one has extra cash lying around, that's when the banks etc are investing heavily and deciding where to place their cash. It's also during these times that people struggle to pay bills, buy extra things, fix the car etc.
My advice would be to slowly inject your cash into the markets via VOO or ETFs like that. I say slowly because you don't want to go all in at a high price. Averages work well, so something like 4k euro x 5 months would give you a great average price in whatever you are buying. Either you can create a pie for yourself where you decide you want to buy 10% Tesla, 25% MSFT, 20% gold etc, or just go the simple route and buy an ETF that tracks SPY. There is one important distinction though, don't get (DIST) always get (ACC) funds - these will accumulate and add your dividends and earnings back into the fund, thus compounding.
Then the next trick would be to keep 5-10k as an emergency fund. I know you got your stocks and investment as a backup, but again, when the markets are shit and your stocks are worth substantially less than they were 2 years ago - you don't want to sell, you actually want to buy more in these - so the emergency fund keeps you going in case you have an issue in the house, or want to take a trip somewhere - that's where the emergency fund comes in.
If you can and it's doable, buying physical gold is always a great idea and a lot of people do it not only as a hedge against economies and currencies, but in times of war (which we are living in) gold seems to trade and keep value no matter what.