When is the best time to start investing?
The answer is easy: the best time to start investing is as soon as possible. Time is an investor’s greatest ally, as it allows for the power of compound interest to work in your favor. The earlier you start investing, the more time your money has to grow and potentially generate returns.
That being said, it’s also important to ensure you have a solid financial foundation before investing. This means having an emergency fund in place, paying off high-interest debt, and ensuring you have a budget that allows you to save for the future. Once you have these basics covered, you can start thinking about investing.
How long should I hold my investments?
The length of time you hold your investments, also known as your investment horizon, will depend on your financial goals and risk tolerance. If you have a long-term goal, such as saving for retirement, you may be comfortable holding your investments for longer. This is because you have the time to ride out market fluctuations and potentially earn higher returns over the long run, among other benefits.
On the other hand, if you have a shorter-term goal, such as saving for a down payment on a house, you may want to consider holding your investments for a shorter period of time. In this case, it may be more important for you to prioritize stability and minimize risk rather than trying to maximize returns.
Ultimately, the time you hold your investments will depend on your circumstances and financial goals. It’s important to review your investment portfolio periodically to ensure it aligns with your goals and risk tolerance.
Aren't we in a recession - why should I invest now?
It’s natural to feel hesitant about investing during times of economic uncertainty, such as a recession. However, it’s important to remember that recessions are a normal part of the business cycle and that the stock market has historically recovered from downturns. While it’s true that investing during a recession carries some additional risks, it can also provide opportunities for long-term growth. For example, recessions often lead to lower stock prices, which can create buying opportunities for investors with a long-term perspective. Remember, time is your friend when it comes to investing. The longer you keep your money invested, the higher your expected return is.
Investing shouldn’t be feared in a recession but instead carefully considered – you should be mindful of your investment strategy. This may involve taking a more active approach to managing risks and doing additional research before making an investment decision. At FLIT Invest, we automatically manage your investments with your best interest at heart, so you don’t have to worry about the hassle of investment research, trading, rebalancing, and tax optimization.
Why should I invest at all?
Ever heard of the terms “passive income” or “making your money work for you?” They both refer to the act of investing, a necessary step towards growing your wealth and financial independence. While until recently, investing and financial planning was reserved for the wealthy, we believe everyone should have access to quality financial advice and the same investment opportunities as everyone else.
Investing should be accessible to everyone – that is a core belief at FLIT Invest. We provide impact investing solutions typically reserved for the wealthy at a fraction of the cost because we want everyone to harness the power of their money to drive change. You should be able to participate in the financial world without large account minimums or a degree in economics! Financial autonomy is for all.
Ready to start your journey to financial autonomy? Head over to our longest standing article How To Budget Like A Pro and take that first step today!
Footnote 1: Content is for informational and educational purposes only. Any views, strategies or products discussed may not be appropriate for all individuals and are subject to risks. Investors may get back less than they invested, and past performance is not a reliable indicator of future results. The information contained herein should not be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product. Investors should carefully consider the investment objectives and risks as well as charges and expenses of a mutual fund or ETF before investing.
Footnote 2: FLIT Invest does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.