IF: you believe in the long term future of the USA.
THEN: dollar-cost-average into the market. Put a fixed amount to work every month. This has been a terrific strategy over the last 50 years or more.
But, caution, you probably don't want to buy a few shares per month of a stock or an ETF in a taxable account. That's because each transaction is a separate taxable event when you go to sell. It would be a nightmare for you to track this yourself. I have no idea how well RobinHood tracks that for you.
If you are investing in an IRA then no worry. The transactions aren't taxable. Of course an IRA has its own problems. Outside of an IRA long-term capital gains are taxed at a lower rate than ordinary income. But when you withdraw funds from an IRA you are taxed at the higher rate.
A Roth IRA doesn't have those tax disadvantages. I've seen a lot of press lately on this issue. For example, in Oregon, the state itself is promoting Roth IRA investing for the "little people":
Participants saving through OregonSaves beneficially own and have control over their Roth IRAshttps://www.oregonsaves.com
All brokers are now required to record and transfer cost basis information for most assets. It happens pretty seamlessly.
There are also tremendous advantages to having differently priced lots -- you can sell the expensive ones, and donate the cheap ones to charity to minimize taxes.
THEN: dollar-cost-average into the market. Put a fixed amount to work every month. This has been a terrific strategy over the last 50 years or more.
But, caution, you probably don't want to buy a few shares per month of a stock or an ETF in a taxable account. That's because each transaction is a separate taxable event when you go to sell. It would be a nightmare for you to track this yourself. I have no idea how well RobinHood tracks that for you.
If you are investing in an IRA then no worry. The transactions aren't taxable. Of course an IRA has its own problems. Outside of an IRA long-term capital gains are taxed at a lower rate than ordinary income. But when you withdraw funds from an IRA you are taxed at the higher rate.
A Roth IRA doesn't have those tax disadvantages. I've seen a lot of press lately on this issue. For example, in Oregon, the state itself is promoting Roth IRA investing for the "little people":
Participants saving through OregonSaves beneficially own and have control over their Roth IRAs https://www.oregonsaves.com