S&P 500 ETF investing for retirement

[BMK]

Investing the lump sum could go horribly wrong if you invest at the wrong time.
DCA every month over 20-30 years (if you have that much time) would cost you a fortune in compound interest.

So what would you do?

I would buy SPY as a lump sum and hedge it with a collar
OTM short call and OTM long put
maybe go out 9 months or a year for expiration
Strikes will depend on your tolerance for risk

 

[murray t turtle]

Yeah but what if you invest a lump sum in the s&p 500 today and tomorrow it goes down and stays down for 20 years? Very unlikely but not impossible. (Already happened)

.... (or in case i retired) i don't care if it goes down because i get the dividends. Obviously an S&P 500 etf or dave ramseys mutual fund plan has the potential to grow more over the same period of time but also at a higher risk.

%%
THATS why so few would even consider a lump sum, even if it worked in SEPT or OCT + it did not work well than .Actually Dave Ramsey 4 or 5 fund plan has less risk than most any single stock plan, unless you are Peter Lynch.
I've done dividend ETFs.
I prefer private sector money market investments + ETFs like QQQ+ related SPY related trades. NOV tends to be up in SPY, but could easy \chop around 200dma.
I also like his post #19; but SCHW money market much more than any kind of bonds.
IBKR + Fidelity have some good money markets, but do your own research.

 

[ryanjt]

Unfortunately SPY returns are increasingly focused on 5-7 stocks so concentration is a lot higher than it looks on paper.
You might try a blend of SPY / IWM (Russell 2000) to get some broader diversification.

 

[murray t turtle]

Unfortunately SPY returns are increasingly focused on 5-7 stocks so concentration is a lot higher than it looks on paper.
You might try a blend of SPY / IWM (Russell 2000) to get some broader diversification.

%%
Good 500+points , good %;
but that'$ =sop, standard operating procedure+ just shows how hard it is to pick top trending stocks.
Like Dave ramsey noted 4or 5 stock funds+ Real Estate + business...... [+book trades i dont do much of that/ but give some away.]
Dave ramsey traded his lawn care guy a .22 rifle for that service. Never have done that, but got a knife today , before markets opened , from the metals deal=worth more than scrap metal/ 100% sure of thatLOL

 

[iprph90]

Perhaps this may be of use to some.

Edit: Note, these are rolling returns which probably gives more clarity on the time you are actually in the market