Had the pleasure to attend a presentation-talk on investment outlook and financial planning given by Justin Urquhart Stewart who was in Singapore 2 weeks ago.
The impressionable stuff has to be this line (besides his quirky stand-up-comedy-talk-show style of explaining usually difficult-to-understand financial terms):
"Drip in new money"
Imagine this: An initial investment of $1,000 followed by 25 years of $100-per-month contribution, coupled with an annualized compounded returns of 10% per annum.
The total capital invested would have been $31,000.
The total portfolio size at the end of 25 years would have been about $130,000. A handsome capital gain of $99,000! The internal rate of return (IRR) would be 5.93%.
With the current highly volatile markets in play, it makes even more sense to be in the market all the time, not fully invested, but the "drip in new money" way. Along the way, with the right amount of rebalancing and tweaking, the money will certainly roll in waves in the future.
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