this post was submitted on 05 Sep 2024
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I have been putting part of my paycheck into a high yield savings account, but haven't bothered with investing it in a responsible manner partially due a fear of losing the money due to bad investments. I'm finally realizing how much potential money I've lost by letting my money stagnate. Please advise me on how to responsibly invest my money, thanks!

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[โ€“] dhork@lemmy.world 5 points 2 months ago (1 children)

In addition to all of the very good advice in this thread, I will add I am a big fan of Dollar Cost Averaging. If you have a large amount to put into the market, don't put it in to whatever fund you decide all at once, put it in on a monthly basis. This protects you, to some extent, from the market taking a dump the day after you buy, because you are always buying. And your cost at the end is an average of all the times you bought in, and is not so much tied to prices on the day you bought in.

This may involve some planning for moving money around, because you will want to keep the remainder in a good HYSA in the meantime.

[โ€“] phoneymouse@lemmy.world 3 points 2 months ago

If you move the money into a place like vanguard, it will sit in a money market account earning 5.25% (as of now) while you DCA into other funds.