Investing Money Trumps Investment Choice

[UnrealizedPotential]

It took me a long time to realize putting money to work is a lot more important than picking the right Stocks or Mutual Funds.Picking investment Choices is important.However,you can have the greatest investment vehicle in the World,but if you don't properly fund it,it won't work for you very well.I thought yearly returns would do most of the heavy lifting for me.That is just not true.It certainly helps to have positive returns,but the real deal is putting money to work,and putting it to work consistently.That is the main driver of making money over the long term.I know I am hardly alone in this mistake.I would go so far as to say the majority of investors make this mistake.Once I learned this lesson,about 5 years ago things improved dramatically for me.I have been investing for years,so I already had everything in place.I just needed to do it more intelligently.Anyone else have a comment or similar story?Let's hear it.

 

[eta2020]

Once I learned this lesson,about 5 years ago things improved dramatically for me.

Last 5 years were great for all of us.

I think investment choices matter a lot though.

 

[UnrealizedPotential]

Last 5 years were great for all of us.

I think investment choices matter a lot though.

So is this the Chicken or the Egg debate?

 

[NW-Bound]

When one is in the accumulation phase, a bear market is a godsent.

When one has retired and no longer has fresh money to put to work, bear markets hurt like the Dickens.

 

[eta2020]

So is this the Chicken or the Egg debate?

I would say over a long term it does not matter if you buy few shares high and few shares low. You just need to put money to work.

But it does matter if you buy managed Mutual fund that charges 1% plus versus something like IVV that charges 0.05% or SCHD that charges 0.07%. IVV and SCHD also don't rely on skill/luck of manager.

 

[REWahoo]

When one is in the accumulation phase, a bear market is a godsent.

When one has retired and no longer has fresh money to put to work, bear markets hurt like the Dickens.

Dickens was actually far more succinct: "It was the best of times, it was the worst of times..."

 

[NW-Bound]

The phrase actually predates Charles, and was used by Shakespeare. I like the sound of it, as it comes off like a cuss word and probably was. There are discussions of this on the Web.