It’s one of the most common questions I get from clients: When is the best time to invest?

When advising clients, my reasoning is two fold. 

First, there is no such thing as “the perfect time” for anything in life, including investing. From a market perspective, seeking to know the exact moment the market will be at its lowest — to buy — or its highest — to sell — is a near impossible endeavor, even for seasoned finance professionals. 

Second, as the saying goes, you should always expect the unexpected. Big life changes will pop up in ways you cannot predict and will in many cases require your more immediate financial prioritization (versus allocating funds to investing).  

So, my answer to this age-old question is, in a word, NOW. There is no time like the present to prioritize yourself and your future by investing more in the stock market. 

Read on to learn more.

“Time in the Market” is Your Most Valuable Asset

I’ve heard it all over the years. Individuals will always find an excuse as to why they haven’t prioritized investing. The market is too high right now. The market is dropping so much right now. Life is too busy for me right now. I’ll invest when [fill-in-the-blank]. 

But as you’re busy making excuses, time — our most valuable and truly nonrenewable resource — is passing you by. Time in the Market > Timing the Market. Time is one of the biggest contributors to long-term success when it comes to investing in the stock market, and I want to encourage you to use it to your best advantage. 

In other words, you’re right on time to start investing TODAY.

The Power of Dollar-Cost Averaging

The market does not go up all the time. Facts. But history has shown us that over time, the market trends upward. 

It is not a linear journey. It will not go up consistently. There will be world events, natural disasters, and policy changes that will wreak short-term havoc on the market. This is nothing new. Timing the market based on the belief that this time will be different has proven to be a wildly ineffective strategy, as referenced in the case study below. 

• Missing the 10 Best Days in the Market — “Looking at data going back to 1930, the firm found that if an investor missed the S&P 500′s 10 best days each decade, the total return would stand at 28%. If, on the other hand, the investor held steady through the ups and downs, the return would have been 17,715%.” (1)

Instead, I recommend dollar-cost averaging. This strategy is based on a streamlined process where you invest a fixed amount of money at regular intervals over the course of a set period of time, regardless of market conditions. You may already be doing this and not even know it! A common example of dollar-cost averaging is when individuals invest a percentage of their income in the market each pay period, often via automatic transfers established by their employer as part of a sponsored retirement plan. 

Benefits of dollar-cost averaging include:

• To create the habit of investing.
• To automate the process of investing.
• To remove any emotional element that might deter you from investing more and remaining consistent.

When you’re playing the long game, the current moment is the best moment. 

Get Busy Living and Investing!

If there’s one thing I can tell you about life, it’s that it will continue to get in the way. You can’t “time your life” any more than you can time the market. 

The only two life conditions I make allowances for include:

• If you have significant high-interest debt.
• If you need the funds and the cash for a short-term priority goal within one to three years. 

If one of these two things is true, then it will be necessary for you to prioritize these goals ahead of getting started in earnest with your investment journey. Beyond that, there’s no life excuse that doesn’t lead to a slippery slope. 

Picture this:

• You’ve accepted your very first job offer, complete with employer-sponsored 401K. Score! You’ll invest once you get your first raise…
• You’ve finally gotten that big promotion and the paycheck to match! You’re officially managing a team and life is good. You need a new wardrobe to command the respect your shiny new title deserves. You’ll invest once you’ve suited up…
• You’re cruising along at work and even squeezed in some time for your personal life. You’re engaged! Weddings are expensive. You’ll invest once you’ve saved up for a best-day-of-my-life-level celebration… 
• The honeymoon period was a dream, but your living quarters are feeling a bit too cozy. You’ll invest once you’ve saved up for that dream home and the increased cost of home ownership…
• You’re ready to expand your family, be it with either a human or fur baby. Cue the cuteness! You’ll invest once you’ve built up a buffer for the new bundle of joy… 

You get the idea! Invest today so that you’re better prepared for the chapters of your life that have yet to be written. 

When is the Best Time to Invest? Today— Prioritize It and Grow Your Wealth with Confidence

There will never be a perfect time in your life to invest. Life is busy, and it will only get busier. 

Make investing a habit TODAY so that when financial opportunity knocks, you have a solid foundation in place. It doesn’t matter if you start with $10, $100, or $1,000 a month. What matters is that you START. 

Make long-term investing a priority. You can thank me later.

Stop wishing and waiting and start building your wealth now! Learn more about ways to work with me to gain the knowledge to build a diverse and profitable investment portfolio that aligns with who you are and the goals you have for your future.  

(1) CNBC Article