When asked when to invest I say now!
Why now? Because every second your wait and procrastinate, you give up one of your greatest assets – time! Of course, if you are procrastinating you aren’t alone.
More than 60 % of Americans find investing scary and about 50% say they will invest – “but not just right now”! Every second you wait to take the leap and get into the market you give up the greatest assets and that is having time on your side.
The further from retirement you are, the more time your assets have to recover from big losses, and it gives you a chance to take a little more risk with your portfolio for a potentially bigger reward. Plus, the earlier and sooner you invest, the more time for compound interest to work its magic.
Remember the rule of 72. To find out how long it will take for your money to double just simply divide your portfolios rate of return into 72. So, if you are about 6% then your money will double in 12 years. But if you earn a rate of return at about 10% which is the average return for stock portfolios dating back to 1926, then your money will double every seven years.