You said this was not your retirement, but if it pre-tax dollars I think it has to be some type of retirement plan, which will be taxed and penalized if you withdraw funds early. Make sure you know what you have.
My advice is to match the investment to the goal or purpose. If it is retirement, you have a long time to go, and consistent investing in the market is the way to go; don't worry about short term (even several years) ups and downs. You have a 40 year horizon here.
If, on the other hand, you are saving this for a short term goal (3-7 years more or less), such as for a car, boat, guns, or down payment on a house, you should not be exposed to the market at all. Stay in cash.
If it is "play" or gambling money, it shouldn't be in a tax defferred account.
Lastly, picking a handfull of stocks and trying to correctly "time" the market is more gambling than investing; and that's okay as long as you know it. You can play smart, but you will still be lucky or not. Investing in the market requires a longer time commitment and a balanced portfolio of stocks. It is difficult, if not impossible, to be an index fund.
My advice is to match the investment to the goal or purpose. If it is retirement, you have a long time to go, and consistent investing in the market is the way to go; don't worry about short term (even several years) ups and downs. You have a 40 year horizon here.
If, on the other hand, you are saving this for a short term goal (3-7 years more or less), such as for a car, boat, guns, or down payment on a house, you should not be exposed to the market at all. Stay in cash.
If it is "play" or gambling money, it shouldn't be in a tax defferred account.
Lastly, picking a handfull of stocks and trying to correctly "time" the market is more gambling than investing; and that's okay as long as you know it. You can play smart, but you will still be lucky or not. Investing in the market requires a longer time commitment and a balanced portfolio of stocks. It is difficult, if not impossible, to be an index fund.
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