Finance Quick Answers
When is the best time to start investing?
The best time to start investing was 20 years ago. The second best time is today.
Investing can be a little scary but learning more
about investing will help to ensure your future. Market
corrections or downturns are a natural part of
investing. So if the financial markets do take a plunge,
simply relax and remember these investment tips:
- Market slumps don’t last. Historically, markets have always bounced back and then some.
- A buy-and-hold strategy works better than dipping in and out of the market. In general, plan to hold on to an investment for three to five years or more.
- No risk, no reward. You don’t need to invest in get-rich-quick schemes to get ahead; however, try to take at least enough investment risk to outpace inflation and taxes.
- Keep your eye on the big picture. What matters most is how well your whole portfolio is performing, not how well any single investment is performing.
Source: Loose Change 1999 calendar.
Sandra McKinnon, Consumer & Family Economics Specialist, University of Missouri Extension
Cynthia E. Crawford, Ph.D., Consumer & Family Economics Specialist, University of Missouri Extension
Last update: Monday, July 28, 2008