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Originally Posted by XutvJet
Sounds like you're doing ok. I say ok because you do live in a pricey part of the country and you didn't provide your net worth, just your assets. Regardless, you're still ahead of the majority for you're age assuming you're not carrying some huge note on a home in a terrible area. Maxing your 401K is a solid choice assuming you've got good investment options, the match is good, etc. I'd definitely look into other investment options too like a Roth, brokerage, etc.
I do agree that a correction is coming in the near future (i.e. sometime between next week and deep into 2021  ), but you're young. You have lots of time to make back losses. You will get lit up in the investment world. That's inevitable. You'll have a few big losses followed by a lot HUGE gains assuming you're well invested and smart. As others have noted, timing the market is crazy difficult. I've lost massive sums of money over the past 25 years in the market. However, I never sold during the crashes and stuck to my plan. The only things that changed was that I wised up with the things I was invested in.
I'm 45 and I'm well aware that I'll likely lose 20-30%, maybe worse, of my portfolio's value sometime in the next 2 years. I also know that in the 2 to 5 years following I'll make back all of it plus another huge sum. The only thing I'm doing in preparation to ease the pain is that I plan to sell a small portion of my portfolio in the near future and the proceeds will then serve as my "war chest" when the market tumbles so that I can purchase blue chips and similar at highly disconnected prices.
My Roth, company 401k, traditional IRA, and brokerage account are heavily invested in S&P 500 index funds (~65%) and ~15% in Berkshire Class B and the remainder in a handful of bond, money, small cap funds, and random stocks (for fun). It's done extremely well for me over the years. |
This post should be stickied. Fantastic advice!!!!