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  • Writer's pictureHilary M.K. Poff | CFA

The Importance of Having an Investing Timeline

When it comes to investing most people are concerned about finding the right time to get into or out of a stock. After all, no one wants to buy a stock for more than they think its worth and investors want to maximize their gains when they sell. But timing when to buy and sell a stock isn’t nearly as important as your investing timeline.

Investors who want to time the market, that is, find the most opportune time to get in and out, are really trying to speculate and predict the future—which is impossible. The market is not a rational place and investors are fallible.

Retirement Planning for Investing Timeline

You might get lucky with one stock but lose it all on another trade. Moreover, panic buying and selling can result in lower returns. Making frequent trades can also be expensive when you add in brokerage fees.

Instead of timing the market, it makes more sense for investors to consider their investing timeline. If you have a long-term investing horizon, you’re not concerned about trying to precisely time the highs and lows, or even near-term market volatility. You’re more interested in long-term growth.

Am I Too Young to Start Investing?

You’re never too young to start investing, even if you don’t think you have a lot of money. In fact, because time is on your side, you don’t need a lot of money to get started. The secret to creating long-term wealth is the actual amount of time spent in the stock market. The longer you’re invested in the stock market, the more time your investment has to grow.

If you’re invested in dividends, you can collect free monthly or quarterly payouts for an even longer amount of time. Blue chip dividend stocks also have a history of increasing their annual payouts for decades. Enbridge Inc has raised its dividend for 27 consecutive years.

Starting out sooner with a smaller amount can help you reach your financial goals just as reliably as starting out with a larger sum of money with a shorter investing horizon.

Sharp Asset Management for Your Retirement Planning

Time spent in the market is more important than having perfect timing. If anything, it can make more sense to spend time in the market than try to find the perfect time to invest. Rather than trying to predict the peaks and troughs, let time and patience be your ally. And don’t be afraid to ask for help either.

If you live in Toronto, Mississauga, or anywhere in the GTA and are looking for a portfolio management firm or asset management company to help you build a diversified retirement portfolio designed to suit your investment goals, Sharp Asset Management can help.

Sharp Asset Management Inc. is an independent portfolio management firm that is 100% owner-operated. Since we are a highly concentrated group of professionals, we can respond quickly to changing market conditions.

Sharp Asset Management is not affiliated with any financial institution, securities firm, or mutual fund company. Nor do we earn any commissions or fees on investments we choose for our clients. That means our team of wealth management professionals is focused exclusively on helping you achieve your unique, long-term investing objectives. To learn more about investing with Sharp Asset Management, contact us today.

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