I am enjoying Philip’s transition from fiscally responsible dad to fiscally responsible dad who listened to 90s Red Hot Chili Peppers

Sold my APPL before it tanked, will buy at next major drop. I’d definitely need to make use of the $250k liquidity elsewhere. So what should I be looking at? Large cap or small cap stocks? Maybe crypto?

Buying the dip also has an expensive hidden cost. All the time and stress spent in trying to time exactly when to buy and sell can wreck your health.

I tried "day trading" and buying dips. I hate the highs and lows of gambling and realized it wasn't for me. Seeing the prices go up and down gave me mild stress. Then thinking about the cost of inflation from waiting for the dip, paying taxes on the gains, and the time it takes to pay attention to the trends wasn't worth it. I think the key to doing this is asking yourself if you're enjoying it or if it stresses you out. I have friends that LOVE watching the market. I personally, would rather spend my time doing other things. I took some of my savings and put it into I-bonds instead. Could you guys do a video on surviving inflation?

The only dip I took advantage of was Covid. I cobbled together $5,000 and gave my broker a list of "buy at" prices that he said would never happen. I now own just a little bit of Disney and Coke, but a couple others never got that low.

Another important factor is the dividend. If you hypothetically waited a year, you are missing 1 year of dividends.

Time in the market > Timing the market. Trying to pinpoint the lowest exact point is nearly impossible so most people just dollar cost average. Referring to your 2x vs 1.5x vs 1.1x example. Most people can probably score a 1.4-1.6x with it so that's the most stable choice.

2:55: This point forth, this is an excellent illsutration of the chief problem with waiting to "buy the dip" of even a "sure thing" (such as the broad market) - that is, the waiting part, and all the loss that can (and, commonly does) come along therewith.

Dollar cost averaging is one of the best ways to grow your investments. You can try and time out the best time to buy (I bought a lot a few weeks ago) but you also need to be able to stomach the value going down further when we're in volatile markets.

On top of the already great advice in the video, also remember: 1. Only use what you don't foresee needing within 10 years. 2. The more patience you have, the better. 3. Always DYOR [Do your own research] on investments 4. Know your risk tolerance. Also funny, the last part of this youtube id/url spells OOps 🤣

I prefer spinach dip. 😉 The video caught me in a moment of weakness and I just couldn't resist. Love the channel.

I bought the dip in 2020 and made 64% ROI.

4:16 that's not dollar cost averaging. The individual is buying each time they get paid. immediately putting their money to work. Dollar cost averaging, for example:, would be taking one big pile of cash, you have now, and buying in with 12 equal monthly payments .

I have been following you from about 3to 4yrs.. Thank you for all your two cents

LOL omg 1:23 is also exactly when I understood what she was talking about, too! P.S. loved you on TFD!

The moustache and old haircut needs to come back. I feel like this isn't the same person anymore haha. They have the voice but i'm suspicious about the face

Gotta love your intro sketches!

33 years til retirement. Shut up and take my money retirement accounts! 🤣 Dollar cost averaging gang all day.

Have always loved your channel... PLEASE never stop creating videos!!!

Such a good and concise explanation! I love it!

Hooray for Dollar Cost Averaging! Thank you for getting to this point, I really agree with it even though I have nothing against the idea of buying the dip itself. One thing I would add though is that this video talks about buying individual stocks, which I personally consider risky and not diversified. I propose that you could "buy" the dip, or better yet Dollar Cost Average, against a cheap total market index fund so the question is much easier to understand: is the entire US/World Stock Market as a group (instead of just a single company that is super specific and could fail versus the entire national economy succeeding) going to tank, or is this dip momentary?

I didn't buy the dip, but a coworker of mine did after the 2008 finical crisis. she tripled her invest. I'm happy for her.

I love how clearly you explain things! You're an inspiration!

Excellent summary that is easy to understand.

Simply adding rules to your dollar cost averaging is likely the best way to go, adding more when oversold and less when not, in absolute dollar terms.This way you're leveraging time AND momentum.

Staying in the market beats timing the market. The only reason I'm not buying more stocks now is because I'm in the process of buying a house, maybe. But I'm still consistently investing in my 401k and Roth IRA regardless of how high or low the stocks go.

Come for the financial advice, stay for the dad jokes.

The corny jokes got me 🤣

Definitely one of your best starting bits! Well done

Love these two smarty pants... Educating and entertaining... Love your videos guys

*You two are gem* ❤️

0:25 Ayo family man now, he needs his stock of dad jokes.

Becoming financially literate is the key to being financially successful! So thankful for this channel!

Haven’t seen you in a while. Missed you guys

I was expecting you to talk about when the entire market dips. I wish I had bought more in March 2020 when everything ‘dipped’ due to Covid. I did invest some money at that time and it paid off.

Awesome video! You actually read my mind on the question I was having since a few months ago

So good! Thanks!

Off topic, loving and living for the ink you two are sporting…and the continued amazing money education shared on this platform. ❤

thanks for explaining this. This is what I've been doing with stocks for 10 years and I can confirm that this is the easiest way to invest in the market. DCA guys.

Glad to see this channel back to posting good videos 👍

That intro was gold XD

It's not about timing the market, but time in the market.

645k subs? I remember when this channel only had 4k lol. Very educational and kinda uplifting video!

The best way to buy the dip is to see the dip, think "Maybe I should increase my 401k contributions since prices are down.", and do it!

Dollar cost averaging is good advice, but if you invest in an indidual retirement account like a Roth IRA, it's better to contribute as much money that you can reasonably afford to invest ASAP rather than spreading out the contributions equally over the year. More time in the market will likely have better results then spreading out the contributions if you could have afforded to invest more money earlier. That said, don't invest any money that you expect to need in the short term (< 10 years).

Austin loves tattoos, thanks for the tips y'all

That wilhelm scream 😂

Thank you for your dedication and passion.

Yup! The the efficient market hypothesis at work. Great episode.

Thanks again for this

There is not video of Gen Alpha from Two Cents?

You buy the dip but the dip keeps dippin'. So buy some more (dip).

This is one excellent presentation! Louder please so that people in the back (clout-chasers) can hear you more. Great work, keep them coming!

Wow, you guys are like reading my mind! I was just thinking about buying stocks with the prices falling. THANK YOU FOR THIS INFO!! Super helpful.

Really like your channel, have watched for years! Bring back the 'stache!! Only kidding. I had an idea this morning that I thought might make a good video (series) for Two Cents Where does my tax money go? Like for real, what account does it hit, what withdrawls are made from that account, and who are its managers. I know you have done a similar video before - I just rewatched it, but I'm not thinking about the breakdown of FICA vs defense vs NASA but rather the landscape of accounts and funds that our tax dollars actually drop into. Thanks for all your work!!

Was waiting for this

I haven't even finished watching, but I laughed at that intro.

Haven’t watched this channel in a while and Philip has a sleeve now 😱😂

Thanks! Love you guys

Forget the Dip, buy salsa instead.

Well done PBS! DCA for the win. Simple consistent buying works wonders to combat volatility and keep people on track with constant investing. I DCA into 401(k), IRA & my after tax brokerage with every bi-weekly paycheck. I highly recommend DCA to all who are intersected in investing, the more boring your strategy the better IMO.

Does dollar-cost averaging work when every transaction incurs fees?

Looking forward to the new project!

Yes because I am always buying

i love ur videos so much and thank you for doing them

"Buy the dip" can be framed slightly differently, too, a way to encourage people to keep putting money into the market and not take it out or stop investing entirely. DCA works only if you buy the dip. As for myself, I came into a modest inheritance (about 2.5 times my annual gross pay) this year. I am living off of that while maxing out my retirement savings opportunities at work. And while it's a little sad to see the balances in those accounts being flat or even down slightly, I just tell myself that I'm buying the dip, and when I finally tap those accounts 10+ years from now, future me will thank past me for BTD instead of putting that money into something like a Tesla.

Time in the market beats timing the market ;)

Hey guys, thanks for giving stone perspective account buying the dip. Also, I hadn't seen your tattoos before. They look so pretty. 😍

Is it better dca monthly or daily?

Problem with "Dollar cost averaging" is that it's a strategy that doesn't explain when you should sell and in what quantity. The principle behind it, that you should divide up your investment (as oppose to buying all at once and selling all at once) and invest at different times, is pretty sound. Do you wait 7-10 years down the line and sell your entire position all at once? And how do you know if, at that time, the price is "right"? @4:22 What about a scheme where you save your paycheck and, instead of buying at regular intervals, only buy when you hear certain bad news and observe drops in stock price (e.g., black swan events with likelihood that the company will recover in time; if a company is fundamentally flawed/dying (e.g., blockbuster/gamestop, with the rise of Netflix and digital streaming media) avoid buying/exit position)? Keep tabs of how much stocks you've purchased/share price each time you buy and never sell the same amount of stocks for less. You still get the benefit of diversification (i.e., investing over time) but you optimize by avoiding buying stocks when it's high for no reason, just because "it's the time of the month where you buy stocks" (not a good reason to buy stocks, IMO). For example, you see stocks XYZ at $100/sh. In the past 1-7 years, it was previously $200-300. What caused the dip is a black swan event: pandemic's disruption to supply chain, and you expect it to have long term value (going back to $200-300). In the interim, buy every time there is bad (but not deal-breaking news: bad earnings, rainy day, poor performance -- temporary, transitory stuff). If you buy 50 shares at $100, never sell 50 shares for less than $100. Maybe at the next dip (say XYZ rises to $150 but then falls to $120 after a bad quarter), you buy 30 for $120. Now, of the 80 shares of XYZ you now own, 50 may be sold at anytime for no less than $100 and 30 may be sold for no less than $120. You can hold it long term since it should regress to its 1-7 year average, which is greater than what you currently are buying it for, but there's also no consequence for selling it in the short term if you stick by the rule of selling some number of shares for no less than how much you purchased them for (as long as you're ok with short terms capital gains tax).

Did the mustasche get margin called? 😂

I miss new videos from 2 cents. Wishing you will post more frequently. Love from India.

This is such a great video.

It's simple: get in early and and DCA up!

you dont know how much I love you

5:10 .. unless you're in Congress...

Buy the dip is dangerous since every dip doesn't automatically mean there will be a recovery - it may be a correction or just the start of major correction. Do your homework since there is no free lunch (despite the new trend or treating the market like a casino).

TIME IN the market beats TIMING the market.

Offtopic - You Guys Have Amazing Personality :)

So many explanations and you totally missed the point that you cannot buy parts of stocks, you need to buy whole stocks every time!

Always remember time in the market is better than timing the market. And how do they look like different people in every video?

Time in market >>> timing the market.

“Time in market will always beat TIMING the market”

Sometimes the dip gets deeper and you have to wait a while. I know.

Time in the market beats timing the market...

"Nothing looks easier in Hindsight than stock trading." I love that! I always tell friends never to say in convo about trading, "if only I had" or "I should have". I say yah if I had a crystal ball I would be a billionaire.

Time in the market always beats Timing the market

I like a good queso, but sometimes harissa hits the spot. Ohhh.... thaaaat dip.... trying to time the stock market bad

You explained this so well and helped to relieve a lot of investing-related anxiety! If only I could give it more than one "like" ! 😄

1.One of my favorite shows 2. What happened to Phillips? Who's is this new host

I buy whenever I have money in my account and need to balance out my stocks to keep a "core" investing status. Also buy non-US stocks and bonds to have a well-rounded account.

“I hope you bought blue chips” - brings out takis

You mentioned to me yesterday don’t forget to buy the dip 😂😂😂

Great intro! Commenting for the algorithm

I like Onion Dip to go with my "Blue Chips", make sure to pick up some!!!!

i just bought the DOW dip

I'd add to buy a little extra when it is going lower.

didn't realize that was what dollar cost averaging was

I always presumed, "buying the dip" was just putting extra money that you normally wouldn't have. Have your regular 401k contributions and then add some more money when the market starts pulling back and don't regret it if it pulls back a bit more.

Time in the market always beats trying to time the market