Webcast excerpt: When is the right time to start investing?

Lincoln Wylie

Transcript

I’m reminded of a quote from the terrific Wayne Gretzky, “You skip 100% of the shots that you don’t get.” And that is true for the marketplaces as very well. The magic of compounding Greg talked about: You have to be in the sector to have the magic of compounding. Returns are extremely punchy in the sector. There are up days that are unpredictable, 2% listed here, 1½%, 3% there, and then it stops. And you cannot hold out and guess when that will transpire. And at the outset I told you that you cannot also guess where valuations are substantial. You cannot presume that it will not transpire in the foreseeable future. And so what we say is you should really get invested. Get in the marketplaces. Begin participating.

Now you could be not comfortable doing it in a lump sum, so what we would suggest is to feather it in in excess of time. Do what’s referred to as dollar-cost averaging. Just take 6 months and place that revenue to do the job for you in excess of the training course of people 6 months. You don’t have to do it all at 1 time for the fear that tomorrow is the day the sector goes down. But don’t sit on it for as well extensive since no 1 understood the sector was going to get off following March, and Greg and I cannot convey to you what’s going to transpire in 2021.

But what we can convey to you is that if you’re not invested, you will not get any beneficial return.

Vital information

All investing is subject matter to possibility, together with the possible loss of the revenue you make investments.

© 2021 The Vanguard Team, Inc. All legal rights reserved.

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