$750K In Cash But No Assets Or Pension – 38-Year-Old Asks: 'My Goal Is Long-Term Growth. How Should I Invest?' Reddit Is Divided - Vanguard S&P 500 ETF (ARCA:VOO)

In today’s fast-paced world, many want to build wealth and achieve long-term financial independence. Countless people dream of financially securing their future, and for many, that path is through investments in the stock market.

Yet, the path to financial independence is rarely straightforward, especially for those starting to invest later in life and have little to no knowledge of the stock market, as is the case of one Reddit user.

The individual, a 38-year-old, shared his concerns in a Reddit community of investors. He said that he recently came across a substantial amount of money–$750,000 in cash–but has no other assets such as a house, no pension, and no investments.

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The poster is focused on long-term growth and is seeking advice on how to invest his newly acquired money wisely. He is also cautious about the current market volatility and is wondering whether he should wait a few weeks before he starts investing, whether to go for a dollar-cost average approach and if other options beyond ETFs would suit his goals.

“I’m 38 years old with newly acquired $750,000 in cash. How should I invest? My goal is long-term growth. Should I wait a few more weeks? When [dollar-cost averaging]–what amounts and frequency should I shoot for? And advice for investments beyond ETFs given the volatility at the moment?” he asked.

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The Reddit community has responded to the 38-year-old’s post with insights and advice, so let’s dive deeper into the comments to find out what the community has suggested.

How to Invest $750,000? Reddit Community Shares Insights

Use Dollar-Cost Averaging and Invest in ETFs

One of the most common suggestions was to use dollar-cost averaging to invest in ETFs, especially those tracking global and U.S. markets.

“Definitely [dollar-cost averaging] over a year or two. You should buy world ETFs, U.S. ETFs, and 20% bonds,” a comment says.

One Redditor suggested specific ETFs he thinks would grow the poster’s money in the long run.

“[Vanguard S&P 500 ETF VOO] or [Vanguard S&P 500 Growth ETF VOOG], [Vanguard Information Technology ETF VGT] or [Technology Select Sector SPDR Fund XLK], [Vanguard Total World Stock ETF VT] or [Vanguard Total International Stock ETF VXUS],” he said.

A commenter pointed out he has a more structured approach to dollar-cost averaging with a focus on a few particular ETFs.

“Looking forward to the responses as I'm currently sitting in [iShares 0-3 Month Treasury Bond ETF SGOV]. My plan is to ladder into [iShares Bitcoin Trust ETF IBIT], VT, and VOO. I will do bi-weekly buys starting in June,” he wrote.

A Reddit user suggested a mix of global equity exposure and bonds for a diversified portfolio.

“VT 70%, [Vanguard Total Bond Market ETF BND] 30%. Increase BND 10% for each 10 years of your age from now on. Good luck to you,” the user said.

“VT, [Schwab US Dividend Equity ETF SCHD], [iShares Core Dividend Growth ETF DGRO], [Invesco NASDAQ 100 ETF QQQM], [JPMorgan Nasdaq Equity Premium Income ETF VUSXX] for other opportunities,” a comment reads.

One user mentioned a global stock market ETF but agreed that VXUS is also a good choice.

“I like [SPDR Portfolio MSCI Global Stock Market ETF SPGM], but VXUS is good as well,” a comment reads.

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Don’t Time the Market

Many Redditors cautioned against market timing, with some even predicting what they think the new investor will do after investing.

“Imagine hoarding $750,000 during a 15-year bull market, to only now considering investing it. The market is guaranteed to drop 20% starting the day after the OP invests it. And someone new to investing will get emotional about the 20% drop and sell at the bottom, where it will immediately go on a 5-year bull run again,” a commenter wrote.

“Man, you got $750,000 and you didn't put a cent of that into the S&P 500 over the last 5 years. I can see the S&P 500 being very choppy over the next four years with Trump. If I were honestly you, I would keep that money in a savings bank account. And invest new money from my wages into the S&P 500, bonds ETF, and income ETFs,” another comment says.

Replying to the above user, a Redditor reminded him that the poster didn’t have the money for long.

“Sounds like he just came into the $750,000 recently,” he said.

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