When to invest new cash?

[Jackson15]

A few years ago after reading a couple of Bill Bernstein's books, I decided to give up the detailed personal portfolio management effort for something simpler. The Four Pillars of Investing and the Investors Manifesto formed the rough basis and to be honest with my schedule, this approach mixed with a moderately sized selection of particular equities and other outside investments does me just fine.

What I am curious about is other folks take on side-lined cash. I have more cash sitting in MM than I'd like and I always have the dilemma of when to put it back into the market. I can't say I've heard many people comment from the current 'market is up' perspective, but I suppose the value averaging side makes up later for things you buy at higher price now. The cash has been sitting too long and I don't want to put into more property, etc. Anyone out there using Bernstein's broad indexed approach have any suggestions? Wait for a 'correction'? Put part in now, etc?? Thanks in advance.

[autoxer]

Wait for a 'correction'? Put part in now, etc??

When is the next 'correction' and how big will it be?

I invest as soon as I have the money available. It doesn't matter if I just bought some shares today and the market is at it's peak, because I am thinking long term. I am investing because I expect the market to be higher in 30 years. Since I can't predict when there will be a correction, my best option is to put the money in as soon as I have it available, so that it will be in the market for the longest amount of time possible.

[jpham540]

I do the same as “autoxer” and invest when I get paid. Right now it seem like you’re trying to time the market. No one will know when the market will tank. What if the market goes up by 15%, you would miss the returns. Instead of putting a lump sum in maybe you should try to dollar cost average it in the market monthly. I haven’t read the 4 pillar of investing and the investor manifesto book yet, but I do follow the boglehead investing. I admire jack bogle and his method of investing in index funds. Check out their getting started page http://www.bogleheads.org/wiki/Category:Getting_started

[jamiesmoneyadvice]

Try Preferreds

If you're worried about a correction, you can invest in higher yielding preferred stocks or ETN's which are essentially corporate bonds that trade as stocks. They can sometimes pay 6-8-% with a payout like a bond. IF you can find one on a stable and healthy company, these can be worth it and not decrease as much in value during corrections.