TLDR Pretty much all of my current wealth is in cash, losing money in real terms. I'm 31 and want to invest mainly in equities (low cost index trackers mainly) but cannot bring myself to invest now with world indices at all time highs - I know I can't time the market but also can't get over the fear that I will lose out big if I invest now! Help!
I've recently got myself into a reasonable financial position - no debts, a secure income and around £100,000 (c. US$120,000) in cash.
I'm 31 and so want to invest mainly in equities with a view to becoming financially independent within around 15 years. In addition to the lump sum above I see myself being able to save/invest around £3-4,000 (c. US$3.5-5000) each month for the next 3-5 years, increasing around 50% after that.
My main issue (and it's driving me crazy!) is that pretty much all the main world indices are at all time highs which makes me extremely nervous about getting in at the moment. On the other hand I'm getting around 0.1% interest on the cash (i.e. losing money in real terms after inflation!) which is very frustrating.
I have read and understood all the advice about not believing you can time the market but I still find myself paralysed by the current market valuations and unable to pull the trigger and go for it!
Ultimately I think I'll adopt a strategy whereby I split the lump sum into monthly investments over around 2 years in addition to contributing regularly from new savings - however even this approach doesn't sit well with me - I just feel like I'm onto a loser if I invest at the moment!
Usually I'm a pretty rational person but I just can't seem to reason this one out and override my emotion to stay out! So I'm after some more seasoned investors to put me straight!
Submitted January 09, 2017 at 12:41PM by Aescarnite http://ift.tt/2iVtu1a
