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Some folks are feeling uneasy about investing. Uncertain times can create nervous investors.
Colin is one of those folks. He asked this question about investing in a Roth IRA:
“Before the war, I was planning on setting up a Roth IRA for my wife. But now with the economy on a downward slope, I was wondering if I should wait a little bit or get in now. What you do think?
Colin, thank you for reaching out about investing during uncertain times like this.
This Russian invasion is horrible and I’m hopeful the world will continue to support Ukraine as it has been over the past month.
Let’s discuss your question … Is now a good time to invest?
Well, let’s assume you and your spouse are in your 30’s (based on your Twitter profile, that appears to be the case).
I’m going to share 5 reasons why NOW is a good time to invest. And even if someone’s listening to this after the war is over … it’s still a good time to invest.
Why NOW is a Good Time to Invest
1. If You Wait For Things to Get Better, You’re Buying Your Shares at a Higher Price
Uncertain times can be difficult for investors. This is your hard-earned money after all.
Realize though that if you decide to wait until things get better in the stock market, then you’ll be buying your shares at a higher price. When you do that, you’ll be getting fewer shares and in the long run, building less wealth.
The last time it was valued this low was in last summer. So if you buy at today’s prices, you’re essentially getting it at a discount.
Shockingly, that low price of $227 was an all-time high for this fund! So, I don’t doubt that we’ll be hitting another all-time high again really soon.
Will it be this year or next year? Well, let’s discuss that in our next point.
2. No One Knows What the Stock Market Will Do This Year
Ignore all of the financial news experts that tell you what is going to happen with the stock market this year. Do you know why?
Because they are guessing. They have no idea what the stock market will do this year. Their living is made from making guesses all day long. They may be educated guesses, but they are guesses nonetheless.
Since they don’t know, you don’t know and I don’t know … we just need to start as soon as possible.
And we need to realize that the stock market will go up and down like a roller coaster for the next few decades until you reach retirement. BUT over that timeframe, historically, it’ll more than likely go up.
3. The Stock Market (Historically) Goes Up in the Long Run
Andy Hill is the award-winning family finance coach behind Marriage Kids and Money - a platform dedicated to helping young families build wealth and happiness.
With millions of podcast downloads and video views, Andy’s message of family financial empowerment has resonated with listeners, readers and viewers across the world.
When he's not "talking money", Andy enjoys being a Soccer Dad, singing karaoke with his wife and watching Marvel movies.
About Marriage Kids & Money
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