Overview of Should I Buy Now?
In this DIY Money episode, Logan and Quint answer a common investing question: should you buy into the market when prices feel high or “extended”? Their core message is that investing decisions should be driven less by market headlines and more by your time horizon, allocation, and disciplined process. If your money is needed within five years, they say not to invest it. If you’re investing for the long term, the right move is usually to keep buying consistently, even when the market feels expensive.
Main Takeaways
1. Don’t invest money you’ll need in the next 5 years
A repeated rule in the episode: if your money has a 5-year-or-less time horizon, don’t put it in the market. Short time frames carry too much risk of loss, regardless of whether markets feel cheap or expensive.
2. For long-term investors, buying at highs is not a reason to stop
They acknowledge that markets can feel overvalued or difficult to buy right now, but stress that long-term investors should keep investing through dollar-cost averaging.
- This is especially true in workplace retirement plans like:
- 401(k)
- 403(b)
- 457 plans
- Roth IRAs
- If the market drops, consistent contributions improve your cost basis.
- Over time, a rebound can mean those lower-priced shares perform very well.
3. Young investors should welcome corrections
For younger investors with decades ahead of them, a market correction is not something to fear—it’s something to take advantage of, as long as they continue buying.
The logic:
- You keep contributing during the downturn
- You buy shares at lower prices
- When the market recovers, those purchases can significantly boost long-term results
4. Allocation matters more as you get closer to retirement
For people approaching retirement, the answer is not “stop investing,” but rather adjust your allocation appropriately.
They discuss common stock/bond mixes like:
- 60/40
- 50/50
The right mix depends on:
- Time horizon
- Risk tolerance
- Financial goals
The point is to make sure your portfolio still fits your life stage.
5. Rebalancing is the discipline that removes emotion
One of the biggest tools for handling market highs and lows is rebalancing.
Why rebalance?
- It helps you stay within your target allocation
- It forces discipline when markets move
- It can make you sell what has become overweight and buy what has become underweight
They mention two common approaches:
- Annual rebalancing
- Tolerance bands: rebalance when an asset class drifts too far from target
6. Retirement does not eliminate risk
A key misconception they address is that risk stops at retirement. It doesn’t.
Even after retirement:
- You still need growth to keep up with inflation
- Your purchasing power still needs to last
- A portfolio must generally continue to grow over time
Their point: retirement changes your risk tolerance, but does not remove investing risk entirely.
7. The purpose of investing is to outpace inflation
They emphasize that the real reason to invest is to preserve and grow purchasing power.
Inflation affects:
- Food
- Gas
- Utilities
- Healthcare
- Services and everyday expenses
By investing in companies that can raise prices and increase profits over time, you give your portfolio a chance to grow faster than inflation.
Practical Guidance
If you’re early in the DIY Money journey
Focus on the foundation first:
- Track expenses
- Build an emergency fund
- Maintain fast cash / short-term savings
- Pay down debt
- Capture any employer 401(k) match as early as possible
If you’re already investing
- Continue dollar-cost averaging
- Don’t pause contributions because the market feels high
- Use a target allocation that matches your age and goals
- Rebalance on a set schedule or when your allocation drifts too far
If you’re nearing retirement
- Reduce risk thoughtfully, not emotionally
- Keep some equity exposure for inflation protection
- Make sure your portfolio still supports long-term spending needs
Closing Message
The episode closes with the familiar DIY Money philosophy: live on less than you make, invest the rest, and do so for a very long time. Their main answer to “Should I buy now?” is essentially yes—if you’re investing for the long term and have the right foundation in place, keep buying according to your plan rather than trying to time the market.