How can I enter the market today at such high valuations to meet 20 year long investment objectives?

I am a 34 year old long-term systematic investor planning for my children's education and my personal retirement. I deploy a monthly fixed sum on a diversified portfolio of ETFs of US stocks, Emerging stocks, bonds, European stocks, etc. I am also receiving a large liquidated sum of a real estate asset that I would like to invest in a long-term goal. What is the best way to invest currently, considering markets are at a significant high? In my earlier systematic plan, I am investing over a long period of time, on a weekly basis through a robo advisor, thus averaging my cost. However, with a second type of lump sum investment, what is the best way to approach this?

Financial Planning, Investing, Asset Allocation
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June 2017

Given your extended time horizon, I think you are moving in the correct direction.  Investing  regularly on a systematic basis is akin to dollar-cost averaging.  Dollar-cost averaging has its pros and cons. One pro is the sense of controllingyour cost positioning when you invest over long periods of time.  At times such as these when valuations are stretched, not only will you get that advantage, but you may also gain better average pricing if you use the same approach with the lump sum you refer to.

Further details of your investments would help.  With that said, however, I suggest you simplify your portfolio.  At your age, there's little reason other than risk mediation by holding fixed income.  A few exchange-traded funds holding broad range of U.S. and international is sufficient.  A decade or more from now, you might begin adding well-selected fixed-income securities.  For your children, a 529 plan would be appropriate, heavily invested in equities until they are in their early teens.

Good luck! 

July 2017
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