Captial Deployment into a Downward Stock Market

Currently I have $100,000 of my SEP-IRA sitting in the money market. Yes, yes, I hesitated to dollar cost average all my IRA money that's why I have the excess fund. In reality I missed out on the big market up turn with all that money sitting on the sideline. No point in regretting. All I can do now is to devise a strategy to get back to full investment. I am 44 y/o. I still have a 21 year time line so logically I should be fully invested.

First of all I have to credit Financial Samurai for getting me to think about this subject. I am employing his idea of investing in 5 tranches during market downturn.

Here's my plan to invest $100,000 based on the prediction that the market may drop 20% from peak

S&P 500 drop 4% from peak (2044) - Invest $15,000
S&P 500 drop 8% from peak (1959) - Invest $20,000

SP500 4% drop (2044) – 15,000
SP500 8% drop (1959) – 20,000
SP500 12% drop (1874) – 30,000
SP500 16% drop (1789) – 20,000
SP500 20% drop (1704) – 15,000 - See more at: http://www.financialsamurai.com/develop-an-investing-game-plan-for-the-stock-market/#comments

S&P 500 drop 12% from peak (1874) - Invest $30,000

SP500 4% drop (2044) – 15,000
SP500 8% drop (1959) – 20,000
SP500 12% drop (1874) – 30,000
SP500 16% drop (1789) – 20,000
SP500 20% drop (1704) – 15,000 - See more at: http://www.financialsamurai.com/develop-an-investing-game-plan-for-the-stock-market/#comments

S&P 500 drop 16% from peak (1789) - Invest $20,000
S&P 500 drop 20% from peak (1704) - Invest $15,000

More than 20%drop I will look up excess non IRA money to invest. Or may the country is at war, and it's time to find shelter in the mountains.

SP500 4% drop (2044) – 15,000
SP500 8% drop (1959) – 20,000
SP500 12% drop (1874) – 30,000
SP500 16% drop (1789) – 20,000
SP500 20% drop (1704) – 15,000 - See more at: http://www.financialsamurai.com/develop-an-investing-game-plan-for-the-stock-market/#comments

SP500 4% drop (2044) – 15,000
SP500 8% drop (1959) – 20,000
SP500 12% drop (1874) – 30,000
SP500 16% drop (1789) – 20,000
SP500 20% drop (1704) – 15,000 - See more at: http://www.financialsamurai.com/develop-an-investing-game-plan-for-the-stock-market/#comments

SP500 4% drop (2044) – 15,000
SP500 8% drop (1959) – 20,000
SP500 12% drop (1874) – 30,000
SP500 16% drop (1789) – 20,000
SP500 20% drop (1704) – 15,000 - See more at: http://www.financialsamurai.com/develop-an-investing-game-plan-for-the-stock-market/#commentsS&P 500 drop 4% from peak (1704) - Invest $15,000

SP500 4% drop (2044) – 15,000
SP500 8% drop (1959) – 20,000
SP500 12% drop (1874) – 30,000
SP500 16% drop (1789) – 20,000
SP500 20% drop (1704) – 15,000 - See more at: http://www.financialsamurai.com/develop-an-investing-game-plan-for-the-stock-market/#comments

SP500 4% drop (2044) – 15,000
SP500 8% drop (1959) – 20,000
SP500 12% drop (1874) – 30,000
SP500 16% drop (1789) – 20,000
SP500 20% drop (1704) – 15,000 - See more at: http://www.financialsamurai.com/develop-an-investing-game-plan-for-the-stock-market/comment-page-1/#comment-258305