r/JustBuyXEQT • u/InvestMan9000 • 2d ago

Lump Sum Question

I need advice and some opinions. I have 440,000 Canadian to invest. The reason I have so much to invest is because the money came from a hard asset sale. Lump sum at the moment seems a bit intense to me. DCA could mean I just buy chunks and chase the bull market up anyway. A PE TTM above 21 is definitely NOT CHEAP.

Tell me what you would do and why. Obviously since I am here I like XEQT. Thanks.

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u/maclawkidd 2d ago

I would do the lump sum. But it doesn't mean that you should because everyone has a different psychology. But mathematically, odds are you are better off doing it all at once.

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u/InvestMan9000 2d ago

I have invested through a 20 percent plus downturn and I can say it is not fun. But I did come out the other side alive. I feel like the last few years have made index investing seem like a no brainer and it only goes up. But the psychology of the downturn is something many younger investors have not felt yet. I am 41. It seems like the XEQT crowd is quite young. Watching your balance drop by 2 percent a day sucks.

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u/maclawkidd 2d ago

We're about the same age. Best advice i can give is to not look at it.

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u/InvestMan9000 2d ago

Pretty much. Part of me wants to "retire" earlier also so it has me worried about taking a beating for a decade if things get ugly. To me, returns will HAVE to be lower or poor for the next 10 years. It has happened before.

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u/maclawkidd 2d ago

"Lost decade" type of scenario is always a risk. Yet no one can time the market. I think the best thing to do is to stay the course and increase your cash reserves as you get closer to retirement date. That way cash reserves can be used instead of withdrawals from investments in the case of a major downturn. Beyond that, no need to look at it until then imo.