- September 2, 2021
- Posted by: Parker Evans, CFA, CFP, CMT
- Categories: Financial Planning, Portfolio Management, Retirement Planning
The best time to invest is now. Avoid procrastination and hoarding cash. Remember, timing the stock market or bond, or money market is hard to do. As esteemed NY Yankee Philosopher Yogi Berra once observed, “Prediction is difficult, especially about the future.” Consider this…
“In the late 1980s, the New York Yankees sent star outfielder Rickey Henderson a six-figure signing bonus. Months later, the team’s auditors noticed the check hadn’t been cashed. A Yankees executive called Mr. Henderson to ask whether he’d had any problem cashing it. “No problem,” said Mr. Henderson. “I’m just waiting for the money-market rates to go up.” –a story as reported in the WSJ.
During Rickey Henderson’s career money market rates remained above 5.0%. Today money market rates in the USA are below 0.25%. Most developed countries have negative interest rates. That’s right, in much of Europe and Japan, you pay interest to the bank to hold your deposits. Take a close look at the table below. Invest in a 2-year Austrian or Swiss Treasury Note and pay -.79% for the privilege.
Investing is hard but can appear deceptively easy. Talk to the Chartered Financial Analyst (CFA) and Certified Financial Planner (CFP) pros at Successful Portfolios. We’ll help you invest now and get you in the game in the right financial ballpark today!