Too many times, I see people panic selling on the way down. While I don’t see any major drops in the near future, they are likely bound to come eventually. I think this strategy would work for anyone who gets emotional in the market and wants to take advantage of drops, but doesn’t know how to do it.
Right now for 2025, all of my retirement funds are maxed out, and have a decent chunk in a taxable account 100% invested in VOO.
I’m content with my holdings, and going forward this year, I plan to stack extra savings in a HYSA with a goal of saving money to put into a house.
My plan is, if we see a 10% correction, I’d add $10,000 to VOO and an additional $10,000 for every 10% below that. In a worst case scenario, if the market dropped 60%, I will have added $60,000 of new money to my taxable. If that means an extra year waiting to put money into a house, so be it. But I will pick up some great shares at a discount.