I’m reminded of a quote from the nice Wayne Gretzky, “You miss 100% of the pictures that you simply don’t take.” And that’s true for the markets as properly. The magic of compounding Greg talked about: It’s important to be out there to have the magic of compounding. Returns are very punchy out there. There are up days which can be unpredictable, 2% right here, 1½%, 3% there, after which it stops. And you may’t wait and guess when that may occur. And on the outset I instructed you you could’t additionally guess the place valuations are excessive. You possibly can’t assume that it received’t occur sooner or later. And so what we are saying is it is best to get invested. Get within the markets. Begin collaborating.
Now you could be uncomfortable doing it in a lump sum, so what we might advise is to feather it in over time. Do what’s referred to as dollar-cost averaging. Take six months and put that cash to be just right for you over the course of these six months. You don’t need to do all of it at one time for the concern that tomorrow is the day the market goes down. However don’t sit on it for too lengthy as a result of nobody knew the market was going to take off after March, and Greg and I can’t let you know what’s going to occur in 2021.
However what we will let you know is that in the event you’re not invested, you received’t get any constructive return.
All investing is topic to danger, together with the attainable lack of the cash you make investments.
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