How often do you find yourself saying, "Now is not a good time"?
1. Don’t Wait to Start Saving
The most common phrase we hear as financial planners is, “Now is not a good time”. The truth is the more you wait each day to start saving, the further you will find yourself from a financially secure future. If you start saving and investing money earlier rather than later the "power of compounding" will earn you a lot more money! Compounding refers to accumulating interest or dividends on both the amount you put into an investment initially as well as the dividends or interest that you earn on that investment. The longer you stay invested the more time your money has for compound interest to work its magic and as long as you stay invested your money increases automatically yearly. The best time to start saving was yesterday, the next best time is today.
2. Invest in Regular Intervals
How much you are comfortable with saving and investing is entirely up to you. No one is forcing you to invest all your money all at once instead, you should invest in regular intervals as the Dollar-Cost Averaging strategy suggests. Dollar-cost averaging is an investing technique intended to reduce exposure to risks associated with making a single large purchase. The idea is simple: spend a fixed dollar amount at regular intervals on a particular investment, regardless of the share price. In this way, more shares are purchased when prices are low and fewer shares are bought when prices are high. Using the dollar-cost averaging strategy you are lowering the average cost of that particular investment by buying the same asset at a different time for a cheaper price removing the stress that can come with volatile markets.
3. Don’t be afraid of uncertainty
It is time in the market that matters, not timing the market. Crashes and recession are an investors best friend. Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than has been lost in corrections themselves. We have an in-house investment team that is there to guide you during uncertain times and to make the necessary investment calls when needed to minimize risk during major global events such as COVID-19. I am happy to share our investment strategy further with you over a 30-minute call that will allow you to also ask any questions you may have on investing in these uncertain times.
Disclaimer - Investments can go up and down and past performance is not indicative of future performance. Please seek advice from a Financial Adviser Representative before making any investment decisions.