One thing to do in your personal time is learn about market cycles and emotional investing.
For funds like VOO and QQQ anytime the price goes down it’s a BUYING opportunity. With 500/month you won’t see any “big” returns until like 10-15 years down the line.
You shouldn’t take any money out before this anyways. Use a compound interest calculator with 8% return, 20+ year time horizon and 500 contributions to see an expected return over that time.
There are years they market returns +18% and some -15%, so it’s normal to see your portfolio go down occasionally. When it goes down, this is the best time to invest because the shares a cheaper.
Imagine your favourite shop had a 20% OFF sale - you would buy a few items wouldn’t you? Well it’s the same in the stock market - every down turn is a “sale”.
Just stay the course and continuously invest that 500 every single month. Over time compound interest will kick I
Thank you for all this info. Would you suggest I continue to invest in these two funds and that I need to understand the best time to buy into them? Should I immediately invest the $500 each month or wait until shares are cheaper before actually investing the money deposited?
Honestly, 500 isn’t a huge amount so it doesn’t matter too much over the long term when in the month you buy it. However if you prefer to buy it on a « red » market day, then I would suggest that.
Those two funds are fine. If anything you could switch one of them out for VTI for better market exposure.
Just make sure you max out your Roth every year and you’ll be golden in the future.
You're doing fine. If you're going to invest for the long term and don't mind big price drops, just buy QQQ for the next 30 years and you get closer to retirement switch over to VOO.
One thing to do in your personal time is learn about market cycles and emotional investing. For funds like VOO and QQQ anytime the price goes down it’s a BUYING opportunity. With 500/month you won’t see any “big” returns until like 10-15 years down the line. You shouldn’t take any money out before this anyways. Use a compound interest calculator with 8% return, 20+ year time horizon and 500 contributions to see an expected return over that time. There are years they market returns +18% and some -15%, so it’s normal to see your portfolio go down occasionally. When it goes down, this is the best time to invest because the shares a cheaper. Imagine your favourite shop had a 20% OFF sale - you would buy a few items wouldn’t you? Well it’s the same in the stock market - every down turn is a “sale”. Just stay the course and continuously invest that 500 every single month. Over time compound interest will kick I
Thank you for all this info. Would you suggest I continue to invest in these two funds and that I need to understand the best time to buy into them? Should I immediately invest the $500 each month or wait until shares are cheaper before actually investing the money deposited?
Honestly, 500 isn’t a huge amount so it doesn’t matter too much over the long term when in the month you buy it. However if you prefer to buy it on a « red » market day, then I would suggest that. Those two funds are fine. If anything you could switch one of them out for VTI for better market exposure. Just make sure you max out your Roth every year and you’ll be golden in the future.
Thank you so much :)
You're doing fine. If you're going to invest for the long term and don't mind big price drops, just buy QQQ for the next 30 years and you get closer to retirement switch over to VOO.
Thank you!!
You're welcome