When is the best time to invest? There are a lot of opinions out there, especially as this was an election year and the recent market trends. You might be thinking, one day there’s caution, the next day there’s a green light. So if you have a sum of money to invest, what should you do – wait it out or go all in?
The media does a good job of suggesting certain stocks perform better with a certain candidate in office, or the market performs a certain way in an election year. Research is out there, however no one really knows what the market will do, from month-to-month or year-to-year, whether it is an election year or not.
There are a few questions you should ask yourself when deciding on the right time to invest. Are you going to leave the money invested for a long time? If you plan to stay invested for years or decades, there is no perfect day to wait to invest. The longer your money stays uninvested, the less days it can be put to work for you. The longer you plan to stay invested the more risk you may choose to accept, depending on your tolerance. But waiting days or months is likely not going to provide a great benefit.
In fact, trying to time your investments is not a smart strategy. There is no way to predict when the market will fall and when the market will rise. It has actually been proven that investors who try to chase performance, or buy and sell sporadically, actually do worse than those who invest and stay invested.
Next, have you developed a financial plan with an investment professional? It’s important to make sure all investments you’ve chosen are working together and match the goals you set for yourself and your family. Having a roadmap developed specifically for these needs that extends through your working years to retirement and beyond eliminates the stress of picking and choosing investments and when to buy and sell.
Lastly, have you been putting too much focus on the media? The media will famously focus on certain stocks, funds or indexes and try to influence investors. Generally, new investors monitor the market and news, while savvy investors will do thorough research on company reports, industries and economies. This is why it is helpful to have an investment professional in your corner, developing and maintaining a plan tailored specifically for you.
Investing shouldn’t depend on news reports or the election. Plus there is a lot of information the media won’t share with the general public too. It doesn’t make sense to make your long-term investment choices based on political parties, or companies the candidates support or even policies the candidates may put in place if they take office.
The best time to invest is actually now. Each day, month or year you put off investing, it becomes increasingly more difficult to reach your retirement goals. To discuss questions about investing, retirement strategies, and your financial future, contact the team at Bayntree Wealth Advisors at email@example.com or 888-255-3200.
Bayntree Wealth Advisors, located in Phoenix and Scottsdale, Arizona, provides comprehensive financial planning and wealth management. The Bayntree team specializes in all aspects of financial health, including retirement planning, risk management, investment advice, tax strategies, estate planning and insurance.
Bayntree does not provide specific legal or tax advice. Please consult with your tax advisor or legal professional for guidance with your individual situation.