Already investing, but I have a cash account sitting around. How do I best go about investing it?

[rengb121]

I’ve been investing around 1200chf into IBKR and 400chf into my 3rd pillar per month for a couple years now.

My remaining savings are mostly in a cash account which amounts to just over 50k. If I think about my potential emergency fund, it would probably be around 20k, meaning I have 30k or so that could be further invested.

How would you go about doing so best?

Would you double those monthly investments so that the 30k lowers over time, or would you dump it all in at once now? Or alternatively, is there a case for keeping that 30k for when the market is perhaps not doing so well (buying during a recession). I know timing the market isn’t the best move, but in this case with “money on-top” it might be?

 

[bulletproof3]

@rengb121 you can double your monthly contributions or you can dump all the surplus in the IBKR account. Either way is fine. It is up to you what gives you a better sleep.

I would opt for the latter since i know that time in the market is better than timing the market.

I also go with an important part of my portfolio with W.Buffet’s BRK.B which i know that will have the cash to scoop up bargains in the market if a crash would occur. I lose no sleep whatsoever.

 

[mulungi]

@rengb121 The research says that dumping it all in at once now (lump-sum) tends to outperform doubling your monthly payments (cost averaging). Trying to time the market rarely works out (at least for us inexperienced investors).

That being said, you have to be sure that you will not need that money in the short or mid term. Is 20k enough of a safety net for you based on your budget? Do you see any short or mid term risk to your financial situation? Are you planning big purchases in the near future (car, house, wedding, …)

Hope that helps.

 

[cindergames]

@rengb121 If you're going to be retired in the next few years, you can put it step by step into your 2nd pillar to reduce your taxes.
If not, you can do DCA or lump sum investing. Don't worry too much if it's for a long term investement. Read this story about investing at the wrong timing:
https://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/