22 years old with 200k
Hey everyone,
Current an1 with 200k in savings sitting in the bank. Majority of this did not come from IB, I started a drop shipping gig in college and surprisingly it paid off (but fizzled out quick). Managed to save up the 200k and looking for the best place to park it/invest it.
Would love to hear from anyone who has done well investing. Mutual funds, S&P, real estate?
I’m all ears! Thanks!
Just dollar cost into some low expense ratio mutual funds and ETFs dude. You’ll be amazed at how much easier it is to save additional $100k with that amount already saved.
No mutual funds. But yes ETFs.
Lump-sum investing versus cost averaging: Which is better? (vanguard.com)
"Using MSCI World Index returns for 1976–2022, Finlay and Zorn calculated that [lump sum] outperformed [dollar cost averaging] 68% of the time across global markets measured after one year."
...
"The paper also examines the performance of [lump sum] and [dollar cost averaging] using a one-year investment horizon of a $100,000 initial investment across three portfolios: 100% equity, 60% stocks/40% bonds, and 40% stocks/60% bonds. In most historical market environments, investors would have been better off investing the lump sum."
I would highly suggest looking at a portfolio allocation closely resembling "https://www.bogleheads.org/wiki/Investing_from_Belgium" search for "Sample equity ETF index funds". I would dollar cost average the 200k in chunks of 20K each month over the next 10 months and would never look back and let compounding do its work.
I do the same with my spare income and have been for coming up to about 4 years now.
I would purchase 200k worth of vanguard total market index fund and never look at the holdings until you are 45.
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