Asked on 07 Aug 2020
Should I wait a little longer or just put in money to invest now?
Hi Anon! I think it is ultimately up to your risk appetite and time horizon. Unless you have any liabilities or are cash tight, the time is now!
We can’t time the market and people are definitely jumping into the market now given the current situation. If you’re able to take on higher risks, do enter now by opening a brokerage account or robo-advisor for something more fuss free.
You need to know you risk profile & time horizon (e.g whats your holding power?) Set aside enough money for whatever reasons and you can start your investing journey...
When you are looking to accumulate wealth over your lifetime, different staring points may bring better returns. That being said, the more time you have invested in the stock market, the better chances of building a substantial wealth.
If you start to set aside money every month and invested in those funds into a diversified portfolio over your working career, you would have definitely benefit a stellar returns on your investments in the stock markets during the last 10, 20, 30, 40 and 50 years.
So ask yourself when are you ready to set aside every single month to invest?
You cant time the market ever. So dollar cost averaging is the way to go. If you are not comfortable putting in a lot of money now, then hold onto more cash. Should the market drop, you have more deployable capital at your disposable to lower your average cost
Hope that helps!
For ultra-longterm investing there is no good nor bad entry point
market timing is impossible
roboadvisors have their costs and reduced performance but can be a O.K. start
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