Is There a Good Time to Invest?

With constant news that life is becoming more and more expensive, the idea of saving money can seem laughable, but if you shut out all the noise and just focus on your personal situation, there is still likely to be an opportunity for investment.

Let me start with this premise.  If you invest over, say, 30 years, there is no way you will experience three decades of constant growth.  There will be periods of great return, modest return, and negative return. Whether you start low and go up, or high and go down, the opposite will follow.

So, when answering the question of when is a good time to invest, you could say there isn’t one. However, I believe that the time to invest is when you have had professional advice as to your circumstances, a plan to follow that you can refer to and have some support in place for when you need or want it.

Now, the market is on a downward turn, but that does mean that investors are getting more units for their money.  The argument for investing now, if you can afford it, is that you can buy more that will have the potential to grow later.  If a TV is on sale in a store, you don’t wait for it to be back to full price to feel you have got the best value.

Of course, you don’t have to invest everything you have. You should have resources that can be called on in an instant, not just for emergencies and unforeseen costs, but also to enjoy yourself with.

If you have just started investing and are fearful as to whether you have done the right thing, remember you are in control. You can increase or decrease payments into savings to make yourself feel comfortable in whatever situation you find yourself in.

The alternative is you invest in property (that is just as vulnerable now), some obscure niche collection like wines or coins (I am afraid I am not knowledgeable or qualified enough to comment on that) or hold on to cash, which is losing its buying power and, therefore value.

Also. as you get older, you learn more about what is more important to you. My clients who are retired no longer want the expensive car or the Rolex watch – they want a holiday or to enjoy a leisurely lunch with friends.

It may feel like you are swimming against (what the media would have you believe is) the tide, but if you have given your situation consideration, taken advice and have a clear plan, I don’t see any reason why now isn’t a perfectly good time to invest.

The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select, and the value can therefore go down as well as up. You may get back less than you invested.

An investment in equities does not provide the security of capital associated with a deposit account with a bank.