We always get asked, “Is now a good time to invest?!” New investors often worry that they might be investing at a peak in the market. The truth is, we have no idea if we are at a peak or not. And if given the chance, you’d eagerly invest at past market peaks.
Trying to pick the exact right moment to invest is impossible. So, don’t worry about what is happening in the market today and just keep investing! This is the best way to let compound growth work its magic. It won’t be a straight line up. There will be plenty of big bumps. But your future self will be very grateful you kept on investing.
The graph is a log graph of $1 invested in the S&P 500 in the year 1950. We removed the Y-axis, but it shows $1 growing to over $1,000! The point of looking at it like this is when you zoom way out, the stock market has steadily climbed upwards. That doesn’t mean every year or even every five year period has been great. But over time, those who stay invested get rewarded.
P.S. want to learn more about investing and everything to do with personal finance? Both of our courses are currently on sale this week! You can get them for $69 each or $119 for both. They both include about 8 hours of video content taken at your own pace and offer unlimited lifetime access. Comment WEALTH to learn more!
As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.
-Vivi & Shane
