Warren Buffett on market timing: 'We haven't the faintest idea'

[progree]

4. Me too - the dividends in IRAs gets automatically reinvested. The dividends in regular (non-IRA)

Last edited Wed May 4, 2022, 09:12 PM - Edit history (1)

accounts - those go to the settlement money market / bank fund until it accumulates to a point where I think it is worth investing in something better (so as to cut down on the capital gains accounting and to think about where I want it to go rather than automatically in the same thing).

Since about the beginning of 2017 when I started getting income both my Social Security and my charitable gift annuity, I'm almost certain I've been a net saver (adding more to investments than taking out).

I notice that an investment in the Vanguard U.S. Total Stock Market Index Fund VTSMX grew 3.544 - fold over the past 10 years (including reinvested dividends) -- that's a 13.49%/year annualized rate of return -- so yes, hopefully all U.S. stock market investors have had rising portfolio values, unless they were heavily drawing down on their investments, or panic-sold every time the market dipped, and got back in the market only as it was nearing a peak . And/or did poorly at individual stock picking.

If my investment portfolio was falling in value over a decade when the U.S. stock market had risen at an average 13.49%/year rate, thereby increasing 3.5-fold, I would be in existential panic crisis mode.