It seems like information about investing is more ubiquitous than ever. It’s impossible to turn on the television, check the news on the internet, or even pick up a magazine without being overwhelmed by advertising for do-it-yourself investing or questionable investment “advice.” Maybe you’ve even done your homework, researched investment strategies, and learned everything you can about the market and how to prepare yourself to take the plunge, but you’re still uncertain. It can be difficult to know when it’s time to start investing, but understanding some basic considerations can help you know when is the right time for you to get started.

Why Is Investing So Important? 

It can be easy to put off investing. The demands of day-to-day life can be overwhelming enough, after all, and developing an investment plan can seem like something that can wait until next week, or next month, or maybe next year. But the truth is, one of the most important facets of an investment plan is time — and for most of us, there’s no time to waste. Even if market conditions aren’t ideal when you jump in, a long-term investment strategy will account for these conditions and help put you in the best position to realize your long-term goals. The earlier you begin, the more flexibility you’ll have to ride out these short-term fluctuations.

Investing is the best way to build long-term wealth. A smart investment strategy will take account of your risk tolerances and allow your savings to outpace inflation and grow in value, while remaining secure.

How Do I Know When it’s Time To Start Investing?

How Do I Know When I’m Ready To Start Investing?

Understanding when you’re ready to start planning an investment strategy can be difficult. Looking at your current financial condition can help you to understand whether you’re in a position to invest. 

First, things first, tackle that high-interest debt from credit cards and loans. While investing is a great way to grow your money, it probably won’t outpace the additional debt you incur each month on a credit card balance. To get yourself ready to invest, make sure that high-interest debt is wiped out.

Next, look at whether you’re managing to put money away every month. If you’ve tackled your high-interest debt and are meeting your monthly obligations with a little bit left over each month, it may be time to think about the best way to invest that extra for long-term goals. While it’s prudent to have an emergency fund on hand to cover about three months, once you’ve reached this point, it’s time to think about the future. Saving money for a child’s educational goals and your own retirement are great ways to use that extra cash in ways that will serve you well over the long term. 

If your goal is to save for retirement, the earlier you can get started, the better. Allowing money to languish in a low-interest savings account will generally mean you’re losing ground to inflationary pressures over the long term. Even if you’re not able to set aside much each month, a disciplined strategy can ensure that money will pay off over the long term.

Talk To A Financial Advisor Early And Often

If you’re not sure whether you’re ready to invest, a financial advisor can help you to take an objective look at your financial situation and create a plan that works for you. As with many steps in our lives, the hardest part is getting started, and a chat with an advisor can make you feel secure that you’re taking the right steps given your goals and stage in life. 

Your investment plan is a living document, which should grow and change over time to respond to changes in market conditions, your life circumstances and family situation, and your ultimate goals. You shouldn’t be investing the same way at age 60 as you might at age 30, or even 40. A financial advisor can help you craft a plan that can adapt as your life changes, one that incorporates new goals and changes in your circumstances. Even if you’re not able to invest a lot right now, your advisor can help you to understand the risks of various investments, avoid emotional decision making, and can allow your strategy to evolve with your needs.

Having an advisor supervising your investment strategy can also help you find peace of mind as you invest. It can be intimidating, as a new investor, to take on the task of watching the markets and continuously educating yourself on the potential risks and rewards of new investment vehicles. Hiring a financial advisor can help you to ensure that you’ll be able to rely on an expert — someone who is constantly evaluating changing conditions and investment opportunities — who will keep your best interests front and center. Having an expert in your corner can help you feel secure in the plan you’ve chosen, while ensuring that your investment strategy is nimble enough to respond to the next big thing — but only if the next big thing is a sound investment. 

Ready To Take The First Step In Preparing For Your Financial Future? Let’s Talk.

At Sustainable Retirement Income, we’re here to help individuals of all financial conditions get ready to meet their financial goals. Our core services are comprehensive planning, tailored solutions, best-in-class portfolio management, and premium service. Our clients’ needs and the solutions we provide are across the financial services spectrum: growth of capital, capital preservation, income, college funding, retirement planning, estate planning, risk management, philanthropic giving, etc.

I would welcome the opportunity to be your source of advice. Let’s start a conversation!