{"id":8068,"date":"2023-07-10T12:01:00","date_gmt":"2023-07-10T02:31:00","guid":{"rendered":"https:\/\/adelaideprivatewealth.com.au\/how-much-time-and-money-do-you-really-need-to-start-investing\/"},"modified":"2023-07-10T12:01:00","modified_gmt":"2023-07-10T02:31:00","slug":"how-much-time-and-money-do-you-really-need-to-start-investing","status":"publish","type":"post","link":"https:\/\/adelaideprivatewealth.com.au\/how-much-time-and-money-do-you-really-need-to-start-investing\/","title":{"rendered":"How much time and money do you really need to start investing?"},"content":{"rendered":"
There\u2019s a common misperception that in order to start investing, you need a large initial sum and lots of time. Here\u2019s why that\u2019s a myth.<\/strong><\/p>\n Investing can seem like a daunting task, particularly for those who think they lack the time and resources to start.<\/p>\n A study has found that many Australian investors think they don\u2019t have enough money to start investing because they believe they need between $1,000 and $10,000.<\/p>\n This common misconception is important to dispel because it can hold some people back from investing in their future.\u00a0While investing may have once been the domain of professionals or wealthy individuals, the introduction of indexing and exchange traded funds (ETFs), as well as advancements in technology, has meant investing is now more accessible than ever.<\/p>\n Gone are the days where investors are required to have a large sum to be able to start investing.\u00a0There are investment options that may allow you to make one-off investments from just $500, and even lower regular investment amounts.<\/p>\n While it\u2019s essential to keep an eye on costs so they don\u2019t eat away at your returns, investing a large sum to begin with does not necessarily make investing more worthwhile. The key to building wealth is instead consistent,\u00a0regular investing of any sum. It not only makes investing less daunting, but it also means investors can harness the power of dollar-cost averaging, which lowers the average cost of investing over time. Remember also that the earlier you start, the more time your investments (no matter how big or small) have to compound \u2013 a powerful multiplier.<\/p>\n Investing your hard-earned money shouldn\u2019t be compared to an activity like gambling. The truth is, investing the right way should actually be a little less flashy. Once you\u2019ve put your investment strategy into place, there shouldn\u2019t be a lot of day-to-day activity. You should just need to check in periodically and make any adjustments needed to keep your plan on track.<\/p>\n Time spent researching stocks, making frequent trades, and trying to time the market rarely has the return on investment some might expect. In fact, the odds are against you when it comes to market-timing. Author Dr. H. Nejat Seyhun determined that an investor\u2019s odds of perfectly timing the market just 50 percent of the time were 0.5 raised to the 816th power. In other words, virtually zero.<\/p>\n While timing the market doesn\u2019t produce returns, time in the market is essential.<\/p>\n Market events, like a company announcing earnings or paying dividends, have little to no effect on long-term investment goals, so they shouldn\u2019t affect your investment strategy. Your investment selection and portfolio strategy should be made based on your life, risk tolerance and investment goals, not on what\u2019s happening in the markets day to day.<\/p>\n Familiarising yourself with some investing basics can help put market events into perspective and may make you feel more comfortable as an investor. Keep in mind that there can be a lot of market commentary and not acting on all market news doesn\u2019t mean your returns will suffer. Instead of trying to adapt to what\u2019s happening in the market at any given time, ask yourself, \u201cWhat mix of investments am I comfortable having, given the time I have to reach my goal?\u201d\u00a0<\/p>\n Talk to us if you have any questions regarding any of the information outlined above.<\/p>\n Source: Vanguard May 2023<\/a><\/span><\/p>\n Reproduced with permission of Vanguard Investments Australia Ltd<\/p>\n Vanguard Investments Australia Ltd (ABN 72 072 881 086 \/ AFS Licence 227263) is the product issuer. We have not taken yours and your clients\u2019 circumstances into account when preparing this material so it may not be applicable to the particular situation you are considering. You should consider your circumstances and our Product Disclosure Statement (PDS) or Prospectus before making any investment decision. You can access our\u00a0PDS\u00a0or\u00a0Prospectus\u00a0online or by calling us. This material was prepared in good faith and we accept no liability for any errors or omissions. Past performance is not an indication of future performance.<\/p>\n \u00a9 2022 Vanguard Investments Australia Ltd. All rights reserved.<\/p>\n Important: The post How much time and money do you really need to start investing?<\/a> appeared first on MLC Contemporary<\/a>.<\/p>\n<\/div>\n<\/p>\n
Myth: You need a large initial sum to make investing worthwhile<\/h3>\n
Myth: You must spend a lot of time researching and picking \u201cwinners\u201d<\/h3>\n
Myth: You must always keep up with market news<\/h3>\n
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