This is the number one question I have been asked over the last couple of weeks.
As you would expect, the answer is not that straightforward.
First of all, what might be good timing for one person, might be bad timing for another person, based on their individual circumstances.
Secondly, no one has a crystal ball and so we don’t know how the share market will perform in the short term. The long term however, is a lot more certain.
What I do know is this:
- Investing should always be done with a long term horizon in mind, and so the here and now becomes somewhat less relevant
- You can reduce your risk by having a diversified portfolio, and by buying quality assets/shares
- You can reduce market timing risk by dollar cost averaging into the market
As per Vanguard:
Dollar-cost averaging simply involves investing the same amount of money into, say, shares or managed funds at regular intervals over a long period – whether market prices are up or down.
Investors practising dollar-cost averaging automatically buy more, shares or units in a managed fund when prices are lower and fewer when prices are higher. This averages the purchase prices over the total period that an investor keeps investing.
It also makes sense to educate yourself on investment principles, and I have a wide variety of resources on this topic:
You can also contact me if you have any specific questions, via Yves@affluenceprivate.com.au or 0432 885 295.
As I understand your time is extremely valuable and scarce, I am able to offer flexible meetings times, including outside business hours and during the weekend. I can even come and meet you somewhere convenient, or talk via videoconference on Skype.
My first consultation is free. I allocate up to 90 minutes to discuss your personal circumstances and to establish how I may best assist you. Where you already have an existing adviser, I would be happy to offer a second opinion. I always quote a fixed dollar fee before we start working together.
Please contact me on email@example.com or call me direct on 0432 885 295. You can follow me on Twitter @YvesSchoof or connect with me on LinkedIn to receive new articles.
Yves Schoof and Affluence Private Wealth are Authorised Representatives of Synchron, AFS Licence No. 243313.
The information posted is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation or needs.
Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant product disclosure statement (PDS) or other offer document prior to making a decision.