Should i put 300k into an S&P 500 ETF?

[M.W.]

For news at retail pricing, WSJ and Bloomberg.com.

For recommendation on investments: My own brain and being observant of trends and discoveries in the broader economy/tech sector/...

If one needs handholding from a site like IBD then much better to just dollar cost average into the S&P

What do you recommend?

 

[deaddog]

For recommendation on investments: My own brain and being observant of trends and discoveries in the broader economy/tech sector/...

Likewise. I'm stricktly a technical trader. Don't pay to much attention to the news, by the time it gets to me it's old news.
I find if the price direction and the news differ, price is usually right.

 

[Tall Mike]

for unlevered spy and qqq, it does. once you are in a position, sell covered calls to the upside and plow the premiums in using cost average.

Actually, you are correct. I apologize for my comment.

 

[mervyn]

Actually, you are correct. I apologize for my comment.

that’s alright. fot a single asset like a house, i’d like to rent it out for income if i don’t use it, same as for index etf, parking in the account i might just want to create a cash flow from the option premiums, but of course i have to actively manage it.

 

[elite1974]

I would not put it all in at once, or risk getting a bad entry.

SPX is about 4500. I would enter 27,000 initially.
Then write 6 SPY naked puts (45,000 each) near the money, one each for the next 6 quarters (1.5 years). If the put hits, you got a lower entry. If it doesn't hit you get the premium and then enter the 45,000 as a market order for that quarter.
At the same time, you have a ladder of t-bills paying 5+% maturing (45,000) every quarter to fund the purchase. This should give you about 12,000 extra income while you are waiting for your dollar cost averaging for the next 1.5 years.

 

[gkishot]

Since the VOO started 13ish years ago it's gone up 300 percent. There's no reason to not believe it won't go up 300+ more percent over another 30 years.

And Vanguard is awesome in the low-fee category. Hard to beat %.03.

P.S. And don't forget to elect to re-invest those dividends!

Over another 13 years?

 

[lwlee]

Take a look at David Carters book ; The 12% solution. A market timing strategy of sorts.

Ask Google Bard how it works,
give me step by step instructions to implement david alan carter 12% solution

Answer
Sure, here are the step-by-step instructions to implement David Alan Carter's 12% Solution:

1. Choose your ETFs. The 12% Solution uses a portfolio of four ETFs:
   
   • A large-cap growth ETF, such as the iShares Core S&P 500 Growth ETF (IVV)
   • A large-cap value ETF, such as the iShares Core S&P 500 Value ETF (IVE)
   • A small-cap growth ETF, such as the iShares Russell 2000 Growth ETF (IWO)
   • A small-cap value ETF, such as the iShares Russell 2000 Value ETF (IWN)
2. Set up your trading plan. You should trade your ETFs on a monthly basis, rotating between the four ETFs in the following order:
   
   • Month 1: Large-cap growth
   • Month 2: Large-cap value
   • Month 3: Small-cap growth
   • Month 4: Small-cap value
3. Rebalance your portfolio quarterly. At the end of each quarter, you should rebalance your portfolio so that it is evenly distributed among the four ETFs. This means selling some of the ETFs that have performed well and buying more of the ETFs that have performed poorly.
   
   
4. Stay disciplined. The 12% Solution is a simple strategy, but it is important to stay disciplined and follow the plan. Don't get tempted to trade more often or to deviate from the plan.
   

Here are some additional tips for implementing the 12% Solution:

• Start with a small amount of money. The 12% Solution is a long-term investment strategy, so it is important to start with a small amount of money that you can afford to lose.
• Invest for the long term. The 12% Solution is designed to generate a 12% average annual return over the long term. Don't expect to get rich quick.
• Do your own research. Before you invest in any ETF, it is important to do your own research and understand the risks involved.

I hope this helps!

 

[deaddog]

Ask Google Bard how it works,
give me step by step instructions to implement david alan carter 12% solution

Answer
Sure, here are the step-by-step instructions to implement David Alan Carter's 12% Solution:

1. Choose your ETFs. The 12% Solution uses a portfolio of four ETFs:
   • A large-cap growth ETF, such as the iShares Core S&P 500 Growth ETF (IVV)
   • A large-cap value ETF, such as the iShares Core S&P 500 Value ETF (IVE)
   • A small-cap growth ETF, such as the iShares Russell 2000 Growth ETF (IWO)
   • A small-cap value ETF, such as the iShares Russell 2000 Value ETF (IWN)
2. Set up your trading plan. You should trade your ETFs on a monthly basis, rotating between the four ETFs in the following order:
   • Month 1: Large-cap growth
   • Month 2: Large-cap value
   • Month 3: Small-cap growth
   • Month 4: Small-cap value
3. Rebalance your portfolio quarterly. At the end of each quarter, you should rebalance your portfolio so that it is evenly distributed among the four ETFs. This means selling some of the ETFs that have performed well and buying more of the ETFs that have performed poorly.
   
   
4. Stay disciplined. The 12% Solution is a simple strategy, but it is important to stay disciplined and follow the plan. Don't get tempted to trade more often or to deviate from the plan.

Here are some additional tips for implementing the 12% Solution:

• Start with a small amount of money. The 12% Solution is a long-term investment strategy, so it is important to start with a small amount of money that you can afford to lose.
• Invest for the long term. The 12% Solution is designed to generate a 12% average annual return over the long term. Don't expect to get rich quick.
• Do your own research. Before you invest in any ETF, it is important to do your own research and understand the risks involved.

I hope this helps!

The Bard left a bunch of stuff out.
No mention of cash or bonds.

 

[lwlee]

The Bard left a bunch of stuff out.
No mention of cash or bonds.

Yeah, I don't take the output as gospel. Just looking for a simple but detailed overview to get an idea of overall strategy. At least Bard gave a partial answer, ChatGPT 3.5, which only had data up till 2021, say it didn't have an answer. Too cheap to pay monthly fee for 4.0.
FYI, an Amazon commenter said to also look at his other book, Cash Trigger. Used combo of both books seems to produce better Sharpe ratio.

 

[murray t turtle]

Look, I don’t believe that asking people on internet is the best place to ask, the majority of traders lose money (similar failure ration applies to this forum) and so be very careful with any advice.
Nevertheless, consider the following:

What if you invest at the wrong time? The economy is not that good, the government is printing money and created massive debts and that cannot go for ever.
Or Oil / Energy ETF?
Or agriculture ETF?
I'm NOT suggesting that you invest in any of these, I have no idea where the market is going to be tomorrow, let alone in few decades. Nevertheless, putting it all into extended index after years of money printing seems like bit of a gamble at this period of time.
Therefore, maybe some diversification could be considered to reduce the risk.

%%
Good points;
Dave Ramsey likes it spread across 4 funds+ has in the past bought SPY also.
$300 ,000 would enable one to buy $1,300+/ worth of business books/investing\trading newspapers; say its now $298,688
OLD Stock Traders Almanac has some good numbers\but smaller numbers due to less average compounding, smaller Roth, inputs ,2001edition .
Dave Ramsey says stock market average average =11%;
so get 12% .Start with $2,000per month for 25 years ,Roth or $298,688 start = same start total, today+ to simplify ,end of2023 year=$298,688.
Add 10 years to both , same total [x12%]=$966,926.
Add 15 years to both, same total [x 12% ]=$5,376,041.
But say someone never did well in business, never even tried real estate + rented all his or her life\oops.
But did super well in stocks average, but less than Peter Lynch Fidelity average of 29.2%.
$2,000 per year Roth, say 20% average, 7 figures in 25 years .
20% compounds so well ,super well/ do one's own research on that> 7 figures.
I like business + some IBD reading + RE alsoLOL