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 …
Original blog that sparked this article.