[bfostbfostbfost]

Can you please give some advice as to how to convert cash savings to a better yield investment? Especially in this current market where it “feels” to me (I am ignorant) that the stock market is artificially high. Maybe start to dollar cost average in to etf/mutual funds, to avoid a bad timing of “shift cash into market at an all time high right before it crashes”? Sorry for the ignorant question but the thought of cash savings eroding quickly while I don’t really know the best plan for it keeps me up at night. Cheers.

[chrisseaton]

The US markets may feel artificially high to you, but a conventional modest-return, low-risk investment account that you can arrange with any high-street investment advisor is going to be extremely broad in their portfolio. The US markets that you think are inflated may comprise 5% or something of it. It'll also be invested in Asia, Africa, South America, and in different industries.

These kind of broad and boring investments always return about 5-10% or something like that a year. Occasionally they go down one year if there's a big bust up, but if you look over a ten year window it's always going up.

So why doesn't everyone invest in them if they're so dependable? Am I selling a get-rich-quick scheme? The reason is they're too modest for most people who are trying to get more like 15%. But those people take more risk - the kind of risk you're probably worried about.

And so why does the bank pay so little interest? Well they're getting that 5-10% from similar modest-return, low-risk investments (well probably a bit less less as they're more cautious)... and pocketing it.

[imtringued]

I would recommend you to form a habit of putting some money into investments every month, not because of DCA or whatever investment strategy is the best, no simply because starting small and growing incrementally is a tried and true strategy for everything in life. If things go wrong you can always quit.