Updated: Mar 29
One of the most common questions I get as a financial advisor is this:
When is the right time to invest?
As a Chinese saying goes, “The best time to plant a tree was 20 years ago. The second best time is now.” Similarly, when it comes to investing, the right time is always now, if you haven't already started doing so.
In fact, each point in time presents a ton of opportunities. The question is, do we have the ability to notice them and seize them? If not, are we leveraging on someone to capture these opportunities for us?
Just like how we need mentors in life, do you have someone who is aligned to your needs and can help you gain greater clarity in your finances?
My role as a financial advisor is to help my clients get this clarity. Clarity for them to see where the perfect opportunity that is catered for THEIR NEEDS lies. And how they can get closer to their financial goals through it.
What do you need today?
There are many times when we look back and say "why didn't I do this before?" or "how did I miss this opportunity?".
But what does looking back do in these cases?
We kick our feet and click our tongues. We feel sad that we missed out on a good thing.
All these thoughts however are about things that have happened in the past.
Instead of focusing on the past or having feelings of regret, let's focus on the present. After all, there is no point in crying over split milk.
Look forward and seek out the solutions you need.
Speak to a professional to uncover the gaps in your strategies or portfolio. Start by assessing your current financial situation and determine your end goal(s). Next, work towards closing that gap.
Conquer your mental limitations
We are all capable of great things. But many choose to remain in their comfort zone.
Investing may seem like a chore to the uninterested. You may find yourself procrastinating on getting started.
Or, you may have fears that are stopping you from exploring this area of your finance. You yourself or someone you know may have had a bad experience before. Therefore, you shy away from investing.
But, "Never Let The Fear Of Striking Out Keep You From Playing The Game".
If it feels like a chore, outsource the legwork to a professional.
If you find yourself procrastinating, let someone you trust hold you accountable.
If you have fears and concerns, seek to educate yourself to know better.
If you had a bad experience, remember that sometimes we win, at times we learn.
All you need to do is to take the first step.
And remember: For things to change, I must first change.
Is there a Right Time to Invest?
Do you know that if you had invested $1,000 in Nike 10 years ago, you would have made $7,500 today?
Many people fall into the trap of waiting for the RIGHT TIME.
Granted, there will be more ideal periods (aka bear markets) to invest. A sizeable investment during such window opportunities can boost your portfolio. However, they happen once every market cycle (i.e. 8 to 10 years). Are you then going to give up the cumulative returns you can enjoy in a bull run?
Don't be someone who miss the forests for the trees.
Instead, here are four reasons why you should invest now:
1️⃣ To prevent inflation from eating away your dollar value
2️⃣ The market goes up over time
3️⃣ Take control of your future
4️⃣ Building a nest egg for retirement
P.S. Focus on getting yourself covered, first
Before we can learn how to make money, we must first learn how not to lose money.
Unforeseen events such as an accident or critical illness doesn't just affect your physical health, they are detrimental to your financial health, too.
And the painful reality is no matter how much you save, it may really not be enough for a hospital bill, especially if there are complications or if the individual requires special care.
Neither do we wish for you to be in a position where you are forced to withdraw or liquidate from your investments for such unforeseen expenses.
The investments, more often that not, are meant to serve other purposes such as meeting your short, mid and long term goals. They are meant to accelerate your journey and potentially enhance your quality of life. Hence, it wouldn't be wise to allow a temporary setback to disrupt our long term plans.
I hope this article has helped you understand more about investing and how you can get started. If there's anything I can help you with, please feel free to reach out. I'll be happy to connect.