When do you invest?

When do you invest? When the markets are up, or down? When you have a little bit each month, or save it up and invest it lump sum?

Often the question of when also gets confused with the question of what (i.e., what do I invest in?) For example, now I have to money (this is akin to when – now), so what do I invest in? Funny – people seem to be interested in investing only when they seem to have the money.

When? All the time. How much? All of it. Have a lump sum – all of it. Have a little each month – all of it. Why? Because contributions are important (without them you have nothing)!

Now … don’t confuse investing it all to mean all towards the same goal. This gets to the question of what. The answer to the what question depends on another when question – this time “when” means: when will you need the money again? If soon, then a reserve portfolio allocated conservatively makes sense. If for education, then in a portfolio properly allocated for that time. For retirement, then allocated so you are comfortable for the rest of your life (note: this is a LOT different than the common perspective based on when you retire … similar to the old saying: Retirement is the START of the rest of your life).

When to invest? All the time (until you retire).

The article below talks about lump sum or monthly investing … about the questions this blog started with …

Article also at Morningstar and at AdviceIQ.

Original blog that sparked this article.

 

 

About Larry Frank, Sr.

Larry R Frank Sr., MBA, CFP®, is an experienced financial advisor and a published author on Retirement Planning Research. Have a financial question? Click Here to Ask Larry

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