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When Is The Right Time to Invest? (Good Question)


Is Now a Good Time to Invest
PHOTO: Chronicles of Her

“Is it a good time to invest?” Good question.  Here’s the short answer from Sallie Krawcheck and our friends over Ellevest: “Yes … but yesterday probably would have been even better.”

Why?

Because every single day you wait could cost Future You about $100. (Mhmmm). That’s like having $4 deducted from your bank account every single hour of every single day. Um, no, thank you. (Here’s how they calculated that.)

You can thank two things for this.  First, despite what you hear on the media, the market has historically trended upward over the long term. (That’s fact) And second, the power of compounding.

Compounding is what happens when your investments earn money, and then that money earns you even more money. And so on. And so on.

Take this example:

feb_article_compounding_returns_infographic-05
PHOTO: Ellevest

All that being said,  historically, the most successful approach to investing has been to tune out all the noise in the media and what you hear about predictions and “hot stocks”. Instead, invest consistently, a bit out of every paycheck, with an eye on the long term.

Why this is especially important for us women

ICYMI,  there’s a big gender investing gap. Women retire with two-thirds as much money as men even though we  live an average of 6–8 years longer. so, why do we have less money? There are a lot of reasons why, including the gender pay gap, and the fact that women take more  frequent career breaks. (BTW, Ellevest’s platform takes these things into account.)

It’s not cool. And it’s not fair. But it’s the reality of the situation. And it means we have to start investing – like now – like yesterday.

So let’s take advantage of every opportunity we have to use smart investing practices designed to help solve this problem.

If you’re a first time investor in your 20s, 30s, or even 40s, and you haven’t started, today is the best time to start.

Trust us – It’s not as confusing as the bankers and economists make it out to be. ver time.

And, contrary to popular belief, you can start investing before you have a lot of money. Seriously — with a Robo-advisor like Ellevest, you can start with $1, $5, or $500 … all good.  Making a few small, smart investments (like taking advantage of a 401(k) employer match) can have a big impact over time.

Now’s the time to take action and get started.  Future You will thank you,

Invest Like a Woman - Open an account with Ellevest
PHOTO: Ellevest