I'm currently 24% in stocks, 31% in short/intermediate bonds, and 45% in cash.
I'm 26. I have about $2.6 Million net worth, of which >99% of it is liquid. I feel like a lot of the advice on here is geared toward people who have a portfolio proportional to their age, i.e. contributing <=10% of their income over time as they go through their career.
As for me, I'm still in college since I have a medical disability that makes it difficult to attend full-time (and I've had to take a few medical withdrawals along the way). I'm studying computer science at a competitive public university, but I have no idea what my career prospects are going to be because of my medical handicap. I'm worried I might not be able to get or maintain full-time work at all. I still have at least 1.5 years left of undergrad, and then another ~1.5 years if I decide to get a masters.
My portfolio has also been 100% in cash since 2008 since everything was in trusts until a few months ago (i.e. I had no control over the money. I received distribution checks to reimburse me for expenses like tuition, food, rent, etc.).
The big thing I get worried about is now that I watched the market climb and climb for nearly 10 years, I finally get the money at this ultimate all-time highs. Not just all-time highs though, but at the end of a natural business cycle.
I don't plan on chasing the market my entire life. I would just prefer to jump in at a low from the beginning, and then ride it out from there.
I've read hundreds of other people talking about this dilemma, but the answer I read is always, "You can't time the market. Throw it in now. You have time to recover."
But the problem is that when they say you have time to recover, they're assuming that you will continue to make proportional contributions each year (relative to the size of your portfolio). There's a good chance that this is all the money I will ever have to contribute if my medical issues impair my ability to work (or the money I make will be insignificant to my portfolio).
I've spoken to a handful or so financial advisors (fee based, not commission based). And all of them have given me the same advice I see on here. I've questioned them with the same argument I just presented, and not joking, a handful of them told me they "never thought about that." I gave up with professional advisors after that and decided to just open an account with Vanguard and invest at my discretion. But I'm still not confident.
Submitted July 10, 2017 at 04:52PM by TomorrowTomorrowYODA