Hi guys, long story short, new grad looking to invest. Currently maxing 401k, but have extra money to invest. Now heres the part where i am confused. So I know i'm supposed to start putting my extra money in index funds and let it sit, but I cant for the life of me understand why. So lets say I put the rest of my earnings into a fund and let it sit where it will gain 8% a year. And comparing that to my savings account of pretty much 0, that looks like a good deal. But lets say I do put all my money into the market, and we see a recession or a correction within the next 10 years. I would be better off holding off putting my money in until that correction, and then going in. Lets say S&P was 1,335.63 in 2000, and 10 years later it was at 1,123.58 in 2010. It did go up a lot during those ten years, but i'm not taking it out at any of those times. Hypothetically, if I consistently put money in during those ten years, I would be down when a correction hits. Why wouldn't I just wait till the correction, (which is supposed to be overdue) and go in then?
Sorry, if this is a stupid question, I am very money illiterate.
I put this in personalfinance, but they just downvoted me and the one guy who I thought could help me, pretty much told to me to pound sand.
Submitted November 03, 2018 at 11:38AM by NalgeneBottles https://ift.tt/2qtLYKN
