AssetBuilder Inc. Registered Investment Advisor - Simple Investing. Smart Future.

I exited the market with my taxable account in December.  I have approx $3m liquid and wonder what your thoughts are as to timing market entry, average in over time, or just taking the leap?

Statistically, the long term odds favor leaping. But it comes at a very high psychological price. So I favor averaging in over a relatively short time. It's a sleep thing more than a numbers thing.

A true Couch Potato, however, would select an asset allocation he or she felt comfortable with and commit. Why? Simply because he knows that market timing is market timing is market timing.

Scott

I've found that since becoming a modified couch potato it has been a fight not to market time.  I've proven to myself that I can't successfully "beat the the market" but its so tempting to sell when I "know" its going to fall.

 It's the saying about market timing.  You have to be right two times.  Once when you get out and again when you get back in.

 I've readjusted my tax deferred accounts to a Couch Potato configuration, and am starting to move more of my "savings" to Couch Potato "investment."  I like it Scott ;-)

 In my reading I've been impressed with the Value Averaging studies, and I've set up my schedule (20 quarters to add about 4x my starting investment).  That actually leaves me with a fair amount of cash, but I'm still a chicken.

 (as long as i have space in tax deferred i'll favor bonds there.  but only about 1/5 of my savins+investment is tax sheltered in iras)