is now the time to buy mutual funds?

[rigz]

the stock market is tanking and my retirement fund is doing horribly so far.

however i am not retiring for at least 25 years so im trying to ignore how bad its doing and keep thinking long term (its tough not to get a little upset watching it drop but im doing a decent job IMO).

anyways, is now the time to buy, buy, buy? im thinking about dollar cost averaging with some relatively decent mutual funds at vanguard (any thoughts on wellington or wellesley?). I am hoping that in 5-10 years I can look back and be very glad I took advantage and bought in 2011.

is anyone else doing this? is it a decent strategy? I can only assume the stock market cannot drop to 0, right?

I am a little nervous with this strategy but I feel that it is my best move long term.

[disneysteve]

It is pretty much always a good time to buy if you have a long-term outlook and a well-balanced plan. Yes, I am continuing my monthly dollar cost averaging and automatic investing just as I've done since 1992 and will continue to do for another 15-20 years. What happened yesterday or today or what happens next week will just be blips 20 years from now.

[krantcents]

Although the market is volatile, I continue to dollar cost average into the market every month through my 403B.

[jpg7n16]

Although the market is volatile, I continue to dollar cost average into the market every month through my 403B.

And the more volatile the market is, the more you benefit from DCA.

[kork13]

Right now is an outstanding time to buy!

....just like it has been for the last 5 years since I first started investing, in spite of the mess the markets have gone through over the last 3 years. As others have said, consistency is more important than the timing of any specific buy (or series of buys). Just keep buying over time, and you'll be just fine. Throw in the periodic portfolio re-balancing, and you're set.

[snafu]

I too have continued my dollar cost average [DCA], long term Mutual Fund [MF] program in both retirement a/c and non-retirement, investment a/cs. I do major reviews regularly and make big changes from time to time. I became less aggressive in March and more conservative via a Dividend Fund.

[JoshuaHeckathorn]

I'm in the same boat as you and am continuing to buy as usual. Let's hope we can look back in 25 years and smile.

[bjl584]

Continue to buy at regular intervals. You have a long time before you retire.

[feh]

If we had some extra cash lying around, I'd be throwing more than our usual monthly amount at the market.

[jteezie]

Yes now is a good time given your 25yr time horizon. Don't plan on seeing large gains within the next 5yrs (though it's possible), but you'll still benefit from dollar cost averaging and by putting your money away, you're more likely to not spend it.

[rigz]

thanks for all the replies everyone.

are vanguard mutual funds a good buy at this point? would purchasing some of those take advantage of this market?

[JoshuaHeckathorn]

thanks for all the replies everyone.

are vanguard mutual funds a good buy at this point? would purchasing some of those take advantage of this market?

If you're into index investing, Vanguard offers some great options. In terms of expense ratio, I don't think any company can compete with them.

And if you're planning to buy and hold for the long run, basically anything that tracks the S&P 500 should be a good buy right now.

[jpg7n16]

thanks for all the replies everyone.

are vanguard mutual funds a good buy at this point? would purchasing some of those take advantage of this market?

1st figure out the asset allocation you will need for your time horizon and risk tolerance

then worry about which companies funds to use to fit that allocation

[rigz]

If you're into index investing, Vanguard offers some great options. In terms of expense ratio, I don't think any company can compete with them.

And if you're planning to buy and hold for the long run, basically anything that tracks the S&P 500 should be a good buy right now.

thanks. how do I know if a particular mutual fund "tracks" the S&P 500 (I dont really know what tracks means actually)?

[rigz]

1st figure out the asset allocation you will need for your time horizon and risk tolerance

then worry about which companies funds to use to fit that allocation

thanks for the reply.

asset allocation means how much in stocks vs bonds, right?

is that all just personal preference? any idea what the recommendation should be for a guy in mid 30s looking to retire in 25-30 years?