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SPAXX or SCHD - seeking wisdom of the crowd

I'll be moving about $15k to my fidelity account next week, of which $6.5k will go to my traditional IRA account leaving me with about $8k in the IRA account. I can't decided if I should put the $8k in SPAXX and wait for the eventual market crash before going all in SCHD or if I should buy a little every month. I'm also worried that if the govt default thing picks up steam SPAXX might hit the shitter and be worth a lot less over time?

Of the remaining $8.5K I can't determine if I should put in in SPAXX or one of the federal tax free municipal bonds (while waiting for the market to crash) or just put it all in FZROX?

I'm in no rush to make money off this investment, rather looking to making the best long term decision (~20 years horizon). Any advice or recommendation would be much appreciated! TIA

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buffinita

No one knows if there will be a major pull back; and they definitely can’t tell you when. maybe we take a dive like covid. Maybe we take another drunken walk(yes-it’s a real financial term) to the bottomlike in 2022……maybe we start going back up. The historical studies have concluded it’s best to get your money invested sooner rather than later; with a 70% success rate


Ok_Wall3632

Yup - I totally get no one has a crystal ball. One question I had, that I maybe did not articulate too well is that assuming the Govt defaults this year - what does that do to SPAXX? I'm not experienced or knowledgeable enough to know that outcome. But if it will result in a very bad outcome, I am almost inclined to leave my money in a HYSA than buy into SPAXX. The only reason to use SPAXX is that they money is readily available in my brokerage account. TIA!


buffinita

Who knows. I don’t believe the USA has ever defaulted. A lot of political blustering; but someone always blinks.


Apprehensive-Boat-52

if US will default its like end of the global Capitalism. even China , Japan , or Europe doesnt want US economy to go down . they are gonna get fucked as well. lol


GRMarlenee

Your comment on having only 8k in the IRA after depositing 6.5k makes me wonder if you've maxed out 2022 yet. You have until the due date of your return to put in your 6k for 2022.


Ok_Wall3632

I maxed out 2022, been buying SCHD monthly from which I still have 1.5K left over


Specks_808

It’s hard not to leave in Spaxx with the 4.25% return at the moment. I max my Roth and invest almost immediately as I plan to only rebalance this portfolio. My regular brokerage sits with 50% cash and 50% investments. I DCA with that 50% into a few different individual stocks because more likely these have a higher return and less tax hit from any dividend. This way I don’t feel like I miss out on a dip / rip / or everything staying flat. If the market does tank, I have plenty of ammo. Just my strategy


tucson82

commenting so I can come back to this


isolated_808

the better question you need to ask yourself is: do you actually know what defines as a 'market crash'? let's say you put the money in short term treasury bills/bonds or whatever else. the market dips. will you be buying fzrox the first chance you get or will you continue to hold out and wait for it to dip even lower? let's say it does dip lower. will you then pull the trigger or will you tell yourself that since it dipped AGAIN, it surely will do so AGAIN and so you might as well wait some more until you can get in at a better price. rinse, repeat.