Is there a right time to invest?

In an earlier post about investing strategies, three different ways of saving money based on your risk tolerance were explored. Regardless of how often and how much you invest, or how you feel about stock market activity, the sooner you begin investing, the better your financial health down the road.

But how soon should you begin to invest? Is there a right time?
The right time to invest is now – regardless of how the stock market is performing during Bull or Bear market conditions.“Timing the Market” or investing only when higher returns are anticipated may result in lower overall returns. Furthermore, if you try to time the market, you may miss the best days to invest.

The table below demonstrates how an investor who hypothetically stayed invested in the S&P 500 Index throughout the 20-year period from 1996-2015 (5,036 trading days) would have earned an 8.19% annualized return. Their initial $10,000 investment would have grown in value to $48,249.94. If they had not been invested for even just 5 of the best trading days, their annualized return would decrease to 5.99%, resulting in a lower value of $32,008.68. That’s a difference of nearly 42.5% in gains the investor could have earned had they stayed invested the entire 5,036 trading days for 20 years!

So, do you really want to wait for supposed better days in the stock market or do you want to stay the course and have an overall better return on your initial investment?




Table adapted from original source: – Index Fund Advisors, Fiduciary Wealth Services. Missing the Best and Worst Days.

‘Staying the course’ or continuing to invest during market volatility may be easier said than done. That’s where a qualified financial professional may be able to help.
A Certified Financial Planner ®professional (CFP®) can guide your decision making by assessing your risk tolerance and financial objectives.

Non-commissioned Certified Financial Planner®  (CFP®) professionals at CDSPI Advisory Services Inc. are here to help you and are happy to answer your questions at no cost and with no obligation.

Call: 1-800-561-9401 Email:

*Restrictions may apply to advisory services in certain jurisdictions. Financial planning and advisory services are provided by licensed advisors at CDSPI Advisory Services Inc. Information on this site is for informational purposes only and is not intended to provide financial, legal, accounting or tax advice.