43k at 19... put it all in VOO?

General
1

I recently came into 43k and I’ve been researching for months. I’m taking my time to figure things out and thought I’d ask for some advice here.

My uncle, who does well with money and investments, says if he were me, he’d wait for a market dip and buy VOO when it’s cheaper.

I do plan to keep 3k separate as an emergency fund in cash. The rest, I’m considering investing. Since I’m based in the UK, does that change anything about my options? Thanks in advance for any tips.

EDIT: Thanks for all the input, everyone. This has given me a lot to think about and research further. Way better advice than I expected. Cheers! :blush:

2

Time in the market beats timing the market. A low-cost ETF like VOO is perfect for someone your age. The issue with waiting for a downturn is you might be waiting a long time.

Get in early and then stop checking the stock market except when you’re adding more money. Leave it alone for years and let it grow.

EDIT: Keep in mind there are no guarantees. It’s possible that you invest in VOO and it drops 5% next week. But over the long term, ETFs like this average 7% yearly returns, which adds up a lot over time. Just ignore short-term fluctuations.

3

@Winter
Great advice. Also, make sure you enable dividend reinvestment on your platform. Set it and forget it, and future you will be very thankful.

4

Slate said:
@Winter
Great advice. Also, make sure you enable dividend reinvestment on your platform. Set it and forget it, and future you will be very thankful.

Just keep in mind that markets can have bad decades, like 2000–2009 or even worse stretches. It’s worth knowing the risks involved, especially with equities. Diversification is key to avoiding huge hits.

5

@Winter
The thing about ‘waiting for a downturn’ is that you might miss the gains that come before it. Timing can be tricky.

6

@Winter
This is super helpful, thank you!

7

Wade said:
@Winter
This is super helpful, thank you!

You could also split the amount and invest it over six months. That helps balance out short-term ups and downs while still getting your money into the market.

8

@Hadley
So basically DCA? That sounds good and might be less stressful than dropping it all at once.

9

Wade said:
@Hadley
So basically DCA? That sounds good and might be less stressful than dropping it all at once.

Yep, DCA. It’s a little less risky in the short term and can feel easier mentally. The most important thing is that you don’t let your money sit idle for too long. Start small, learn the ropes, and then keep going.

10

Wade said:
@Hadley
So basically DCA? That sounds good and might be less stressful than dropping it all at once.

Honestly, just lump sum it. The time value of money works best when you give it as much time as possible. DCA is fine, but lump sum usually wins over the long term.

11

Wade said:
@Hadley
So basically DCA? That sounds good and might be less stressful than dropping it all at once.

Both approaches work, but ultimately it’s about what you’re comfortable with. If you’re uneasy about a lump sum, DCA is a good compromise.

12

@Alston
Exactly. The best strategy is the one you’ll stick with, even if it’s not technically optimal. Avoiding stress and staying consistent are just as important as any strategy.

13

@Winter
Even if you had the worst luck, investing now will still likely pay off in the long run. Here’s an example of the ‘world’s worst market timer.’

14

Your uncle’s advice about waiting for a dip makes sense, but timing the market is easier said than done.

15

Kumi said:
Your uncle’s advice about waiting for a dip makes sense, but timing the market is easier said than done.

Yeah, I don’t really know much about what he does, but he’s always been good with money.

16

@Wade
No worries! Just remember that time in the market usually beats trying to time it. You’re already ahead of most people by starting this early.

17

Kumi said:
@Wade
No worries! Just remember that time in the market usually beats trying to time it. You’re already ahead of most people by starting this early.

Thanks, I’ll look into more options too. Growth ETFs sound interesting!

18

Kumi said:
@Wade
No worries! Just remember that time in the market usually beats trying to time it. You’re already ahead of most people by starting this early.

Your uncle is steering you in the right direction by recommending an ETF. Even if the timing advice is a bit off, the overall idea is solid.

19

You’re young, so you have time to ride out any short-term dips. Just make sure you have a solid emergency fund, and don’t stress about market timing.

20

Kiran said:
You’re young, so you have time to ride out any short-term dips. Just make sure you have a solid emergency fund, and don’t stress about market timing.

What kind of emergencies are people talking about? I live in the UK, so medical costs aren’t a thing for me.