Monday, June 24, 2013

Buy a Little, Wait a Lot

I will continue to trickle funds into my ETF investment strategy, although I plan to reduce the amount.   Before the market open, I put in limit orders 5-7% below Friday's close.  I think now may be the time to step to the sidelines and wait for the correction to take its course.

In July 2011, I wrote in Expect a Buying Opportunity Soon:

"After a 20% decline, I plan invest 10% of our retirement account back into stocks. After that I will reinvest 15% for the next 10%. Then I will reinvest 20% for each succeeding 10% drop. So if the market drops 40%, we will be 45% back into the market. Past 40%, I probably don't have the courage to continue to reinvest."

With the exception of small index ETF purchases, I will wait for the 20% correction before putting more funds back into the stock market.

For more on Strategies and Plans Ideas, check back every Monday for a new segment.

This is not financial or investing advice advice. Please consult a professional advisor.

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