Time > Timing

Do you find yourself waiting for the perfect moment to invest? Are you inclined to sell your holdings once you’ve earned substantial returns? Even worse, do you tend to panic when the market plummets, only to end up selling at the lowest point? If these scenarios resonate with you, it may be time to shift your focus toward a more rewarding strategy.

The importance of staying invested


Market Timing Temptations? Consider a Better Approach

Do you find yourself waiting for the perfect moment to invest? Are you inclined to sell your holdings once you’ve earned substantial returns? Even worse, do you tend to panic when the market plummets, only to end up selling at the lowest point? If these scenarios resonate with you, it may be time to shift your focus toward a more rewarding strategy. The merits of long-term investing and consistent contributions are difficult to dispute and lead to a greater likelihood of financial success over time than trying to outsmart the market’s unpredictable fluctuations.

Beware of Psychological Biases

Legendary investor Jim Rogers once said, “Buy low and sell high. It’s pretty simple. The problem is knowing what’s low and what’s high.” Predicting the market’s peak or trough even once is incredibly difficult, let alone doing so consistently over time. Our behavioral biases can substantially influence our investment decisions, often causing us to make hasty moves at inopportune moments in response to market shifts. Here are a common few:

Overconfidence: Believing in superior knowledge and skills, leading to aggressive decisions and higher transaction costs.

Loss Aversion: Sensitivity to potential losses, causing investors to hold onto losing investments or sell winners prematurely.

Herd Mentality: Following the majority due to fear of missing out or social conformity, leading to speculative bubbles or crashes.

Confirmation Bias: Favoring information that supports pre-existing beliefs while ignoring conflicting evidence, resulting in suboptimal decision-making.

These don’t just impact some people, they affect everyone! Awareness of these biases can help investors realize the need for a disciplined, long-term investment approach that improves their chances of building wealth over time.

Timing the Market

Consider this… If you do happen to sell at the wrong time and miss even just a handful of the market’s best days, it can dramatically affect your account value over time. As you see below, if you had invested $10,000 into the stock market ten years ago, you could have tripled your money! If you missed just the 5 best days in the market, you would have only doubled your money. And if you missed the 30 best days over that ten-year period, you actually lost money! Ouch.


Time in the Market

By prioritizing time in the market, you can avoid the pitfalls of timing the market. Here are some perks of a buy-and-hold approach:

Compounding Returns: When you stay invested, your returns compound over time, fueling considerable long-term growth.

Reduced Stress: Chasing market timing can be nerve-wracking. Embrace a long-term strategy to sidestep anxiety from constantly watching market fluctuations.

Improved risk management: By staying invested for an extended period, you can ride out market downturns and benefit from eventual recoveries, reducing the likelihood of selling at a loss.

Potential for enhanced diversification: Long-term investing provides the opportunity to build a well-diversified portfolio, reducing the impact of individual stock or sector underperformance.

Dollar-cost averaging: Regularly investing a fixed amount, regardless of market conditions, allows you to purchase more shares when prices are low and fewer when they are high. This approach can lower the average cost per share and reduce the impact of market volatility.


Seriously Simple Investing

At Beanstox, we believe in the K.I.S.S. approach (Keep Investing Seriously Simple). Here’s how:

1. Diversify your investments with a personalized portfolio of ETFs.
2. Invest regularly by setting up a recurring investment on a monthly, biweekly or weekly basis.
3. Remember rules 1 & 2!

Ultimately, the key to investment success might not be about predicting the market’s ups and downs but maintaining a simple, consistent approach that harnesses the power of time.

Friends don’t let friends miss out on a brighter financial future. If you’re already using Beanstox, help your inner circle by sharing the Beanstox Automated Investing App with them today!


Get Started With Beanstox

Set yourself up for a better future, with the freedom and security that come from having a growing portfolio. Download Beanstox and set up your automated recurring deposits today!

Browse Our Resources

Nobel prize winning economist Harry Markowitz famously said, “Diversification is the only free lunch in investing.

Nobel prize winning economist Harry Markowitz famously said, “Diversification is the only free lunch in investing.

Nobel prize winning economist Harry Markowitz famously said, “Diversification is the only free lunch in investing.

The Fed started a new rate cutting cycle earlier this month by taking the Fed Funds rate down by 0.50%.

The Fed started a new rate cutting cycle earlier this month by taking the Fed Funds rate down by 0.50%.

The Fed started a new rate cutting cycle earlier this month by taking the Fed Funds rate down by 0.50%.

Unless indicated differently, data is as of 09/30/2024.


*Disclosures

1. Pricing: Free with Beanstox Simple. Learn About Pricing.

2. Power Savings: As of September 30, 2024, traditional US Savings Account Rate: 0.46% (YCharts); T-Bill yield: 5% (YCharts); 5% based on the 30-day SEC yield of the Beanstox short-duration bond portfolio ETF constituents; the 30-day SEC yield is a standard metric defined by the U.S. Securities and Exchange Commission (SEC) and reflects the dividends and interest earned during the period after the deduction of the ETF’s expenses. There are no assurances that this yield will be sustainable in the future. This product invests in one or more ETFs. Results may vary due to expenses and other factors. T-Bill yield as of 09/30/2024 is 5%. Source YCharts.

3. Stocks 500: Where applicable, as of September 30, 2024, S&P 500 return assumes an initial $1,000 investment, 40-year annualized return of 11% (Source: Bloomberg Finance LP). It is not possible to invest directly in an index. This product invests in an ETF aiming to track the S&P 500’s performance. Results may vary due to expenses and other factors. Returns before ETF fees. Diversification is not a guarantee of profit or protection against loss.

4. Wealth Builder: Saving $400/month over 40 years, but not investing and assuming no interest accrual, would accumulate $192,000; however, investing the same $400/month, could add up to over $1million over the same period of time. This projection illustrates a hypothetical example of compounding over time, based on an investment of $400 per month for 40 years with an assumed annualized returns of 7% or more, compounded monthly, assuming the funds stay invested throughout the investment period.

5. All corporate logos are for illustrative purposes only and are not a recommendation, an offer to sell, or a solicitation of an offer to buy any security.

Beanstox Inc. (“Beanstox”) is an SEC registered investment adviser and has arranged for brokerage services to be provided by DriveWealth LLC., a registered broker-dealer and member of FINRA/SIPC. DriveWealth is not affiliated with Beanstox.

Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Before investing, consider your investment objectives and risk tolerance levels and Beanstox’s charges and expenses. The information provided herein is for illustrative purposes only and does not constitute personalized investment advice, recommendations or solicitations to hold, buy or sell any investment or security of any kind. Beanstox’s internet-based advisory services are designed to assist clients in achieving investment goals. They are not intended to provide comprehensive tax advice or financial planning with respect to every aspect of a client’s financial situation and do not incorporate specific investments that clients hold elsewhere. For more details, see our Form ADV Part 2A and Part 3 CRS and other disclosures.

All images and return figures shown are for illustrative purposes only and are not actual customer or model returns. Actual returns will vary greatly and depend on personal and market conditions. Past performance does not guarantee future results. Google Play and the Google Play logo are trademarks of Google, Inc. Apple, the Apple logo, and iPhone are trademarks of Apple, Inc., registered in the U.S.

Our site uses cookies and other similar technologies so that we can remember you and understand how you and other visitors use our site. Please see Beanstox Privacy Policy for more information.

© 2024 Beanstox Inc.


Copyright © 2024 Beanstox. All Rights Reserved

Unless indicated differently, data is as of 09/30/2024.


*Disclosures

1. Pricing: Free with Beanstox Simple. Learn About Pricing.

2. Power Savings: As of September 30, 2024, traditional US Savings Account Rate: 0.46% (YCharts); T-Bill yield: 5% (YCharts); 5% based on the 30-day SEC yield of the Beanstox short-duration bond portfolio ETF constituents; the 30-day SEC yield is a standard metric defined by the U.S. Securities and Exchange Commission (SEC) and reflects the dividends and interest earned during the period after the deduction of the ETF’s expenses. There are no assurances that this yield will be sustainable in the future. This product invests in one or more ETFs. Results may vary due to expenses and other factors. T-Bill yield as of 09/30/2024 is 5%. Source YCharts.

3. Stocks 500: Where applicable, as of September 30, 2024, S&P 500 return assumes an initial $1,000 investment, 40-year annualized return of 11% (Source: Bloomberg Finance LP). It is not possible to invest directly in an index. This product invests in an ETF aiming to track the S&P 500’s performance. Results may vary due to expenses and other factors. Returns before ETF fees. Diversification is not a guarantee of profit or protection against loss.

4. Wealth Builder: Saving $400/month over 40 years, but not investing and assuming no interest accrual, would accumulate $192,000; however, investing the same $400/month, could add up to over $1million over the same period of time. This projection illustrates a hypothetical example of compounding over time, based on an investment of $400 per month for 40 years with an assumed annualized returns of 7% or more, compounded monthly, assuming the funds stay invested throughout the investment period.

5. All corporate logos are for illustrative purposes only and are not a recommendation, an offer to sell, or a solicitation of an offer to buy any security.

Beanstox Inc. (“Beanstox”) is an SEC registered investment adviser and has arranged for brokerage services to be provided by DriveWealth LLC., a registered broker-dealer and member of FINRA/SIPC. DriveWealth is not affiliated with Beanstox.

Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Before investing, consider your investment objectives and risk tolerance levels and Beanstox’s charges and expenses. The information provided herein is for illustrative purposes only and does not constitute personalized investment advice, recommendations or solicitations to hold, buy or sell any investment or security of any kind. Beanstox’s internet-based advisory services are designed to assist clients in achieving investment goals. They are not intended to provide comprehensive tax advice or financial planning with respect to every aspect of a client’s financial situation and do not incorporate specific investments that clients hold elsewhere. For more details, see our Form ADV Part 2A and Part 3 CRS and other disclosures.

All images and return figures shown are for illustrative purposes only and are not actual customer or model returns. Actual returns will vary greatly and depend on personal and market conditions. Past performance does not guarantee future results. Google Play and the Google Play logo are trademarks of Google, Inc. Apple, the Apple logo, and iPhone are trademarks of Apple, Inc., registered in the U.S.

Our site uses cookies and other similar technologies so that we can remember you and understand how you and other visitors use our site. Please see Beanstox Privacy Policy for more information.

© 2024 Beanstox Inc.


Copyright © 2024 Beanstox. All Rights Reserved

Unless indicated differently, data is as of 09/30/2024.


*Disclosures

1. Pricing: Free with Beanstox Simple. Learn About Pricing.

2. Power Savings: As of September 30, 2024, traditional US Savings Account Rate: 0.46% (YCharts); T-Bill yield: 5% (YCharts); 5% based on the 30-day SEC yield of the Beanstox short-duration bond portfolio ETF constituents; the 30-day SEC yield is a standard metric defined by the U.S. Securities and Exchange Commission (SEC) and reflects the dividends and interest earned during the period after the deduction of the ETF’s expenses. There are no assurances that this yield will be sustainable in the future. This product invests in one or more ETFs. Results may vary due to expenses and other factors. T-Bill yield as of 09/30/2024 is 5%. Source YCharts.

3. Stocks 500: Where applicable, as of September 30, 2024, S&P 500 return assumes an initial $1,000 investment, 40-year annualized return of 11% (Source: Bloomberg Finance LP). It is not possible to invest directly in an index. This product invests in an ETF aiming to track the S&P 500’s performance. Results may vary due to expenses and other factors. Returns before ETF fees. Diversification is not a guarantee of profit or protection against loss.

4. Wealth Builder: Saving $400/month over 40 years, but not investing and assuming no interest accrual, would accumulate $192,000; however, investing the same $400/month, could add up to over $1million over the same period of time. This projection illustrates a hypothetical example of compounding over time, based on an investment of $400 per month for 40 years with an assumed annualized returns of 7% or more, compounded monthly, assuming the funds stay invested throughout the investment period.

5. All corporate logos are for illustrative purposes only and are not a recommendation, an offer to sell, or a solicitation of an offer to buy any security.

Beanstox Inc. (“Beanstox”) is an SEC registered investment adviser and has arranged for brokerage services to be provided by DriveWealth LLC., a registered broker-dealer and member of FINRA/SIPC. DriveWealth is not affiliated with Beanstox.

Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Before investing, consider your investment objectives and risk tolerance levels and Beanstox’s charges and expenses. The information provided herein is for illustrative purposes only and does not constitute personalized investment advice, recommendations or solicitations to hold, buy or sell any investment or security of any kind. Beanstox’s internet-based advisory services are designed to assist clients in achieving investment goals. They are not intended to provide comprehensive tax advice or financial planning with respect to every aspect of a client’s financial situation and do not incorporate specific investments that clients hold elsewhere. For more details, see our Form ADV Part 2A and Part 3 CRS and other disclosures.

All images and return figures shown are for illustrative purposes only and are not actual customer or model returns. Actual returns will vary greatly and depend on personal and market conditions. Past performance does not guarantee future results. Google Play and the Google Play logo are trademarks of Google, Inc. Apple, the Apple logo, and iPhone are trademarks of Apple, Inc., registered in the U.S.

Our site uses cookies and other similar technologies so that we can remember you and understand how you and other visitors use our site. Please see Beanstox Privacy Policy for more information.

© 2024 Beanstox Inc.


Copyright © 2024 Beanstox. All Rights Reserved