The theme this week on the One Minute Retirement Tip is “I Sold All My Stocks In 2020...Now What?!”. 

Yesterday I talked about the method for getting back into the stock market that I prefer which is moving ⅓ or ½ in now and then the rest over a period of a few months. If you missed yesterday’s episode - go back and check it out, because I laid out the overall strategy for getting back into stocks of first determining your ideal allocation to stocks, determining your timeline, then putting it on auto-pilot. 

If you’re brave enough, you could also just move everything that needs to get added back to stocks right now. 

That option isn’t attractive to most people, since there’s seemining a lot of risk involved. After all if you’re in this position right now, you’re looking at a stock market that’s at nearly 33,000 on the Dow as I record this podcast - an amazing place to be if you’ve stayed the course. A scary place to jump in if you’ve been sitting out of the stock market on the sidelines. 

But here’s the thing to keep in mind. Statistically speaking, the stock market has about a 70% chance of having a positive return in any given year. And as I talked about earlier this week, there is substantial risk of missing out on those few amazing days in the stock market that are responsible for an outsized % of your overall results.

In most cases, the sooner you can get back into stocks, the better. It doesn’t really matter all that much that the stock market is near it’s all time high, because it could continue to touch new highs all year long and keep going higher from here while you sit in cash. 

As long as you still believe in free market capitalism and that the US economy is worth investing in over the long-term, then there’s no reason to wait it out longer than you can stomach. 

So if you have the temperament for it, you could also implement strategy number 2, which is jumping into the deep end of the pool and getting to your ideal mix of stocks and bonds all at once. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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