When is the right time to invest in stocks and shares?

Predicting the best time to invest in stocks and shares is almost impossible — it depends on your personal financial goals and your appetite for risk versus reward. For most investors, the key isn’t about timing the market perfectly, but about spending enough time in the market to let your investments grow.

If you’re wondering whether now is the right time to begin, the answer is often “yes” — provided you have the financial security to invest money you won’t need for at least five years. To find out what investment approach is best suited to you, book a meeting with an adviser today.

Why Timing the Market Rarely Works

Investing aims to generate profit by selling assets for more than you paid. In theory, you want to buy when prices are low and sell when they’re high — but consistently doing so is near impossible. Even the most certified adviser will tell you that predicting short-term market movements is extremely difficult.

Instead, many independent financial advisers recommend focusing on long-term investing and spending as much time in the market as possible. The earlier you begin, the greater your potential to benefit from compound returns and long-term market growth.

When Is the Best Time to Buy Stocks and Shares?

The best time to invest is when you’re financially stable and can leave your money invested for at least five years. Over that period, stock markets tend to recover from short-term dips and deliver positive returns over time.

By committing for the long term, you can take advantage of compound growth — the process of reinvesting dividends and capital gains so your money continues to build upon itself.

If you’re uncertain about how much to invest or how to manage risk, speaking with a financial advisor can help you find a tailored approach. To explore your investment strategy, book a meeting with an adviser and discuss your goals in confidence.

Different Ways to Invest

If you’re concerned about market volatility, you don’t have to invest everything in one go. A popular strategy known as pound-cost averaging allows you to invest gradually over time — such as monthly contributions to a stocks and shares ISA. This approach smooths out market fluctuations by averaging the price you pay for investments.

Regular investing not only builds discipline but also helps you grow your portfolio consistently, regardless of short-term market swings. Even small monthly amounts can make a difference over the long term.

Whatever your approach, it’s important to use tax-efficient investment options like a stocks and shares ISA, where you can currently invest up to £20,000 per tax year. This can protect your returns from income, dividend, and capital gains tax — maximising the value of your investment.

Should You Hold Cash or Invest in Stocks and Shares?

Keeping money in savings accounts may feel safer, but inflation gradually reduces the purchasing power of cash. Over time, even the best interest rates rarely keep pace with rising living costs.

That said, holding some emergency cash savings is essential. Financial experts often recommend keeping enough to cover three to six months of expenses, and for retirees, enough to meet one year of essential outgoings.

A financial adviser can help you balance cash savings and investments to ensure both liquidity and long-term growth. This can include planning for pension needs, protection cover, and managing ongoing fees so you get the best value from your investments.

Why Now Could Be a Good Time to Invest

Investing in the stock market is a long-term strategy that historically provides stronger returns than holding cash. The longer you remain invested, the higher your potential gains — particularly if you diversify across sectors and asset types.

However, the value of investments can go down as well as up, and it’s vital to be comfortable leaving your money invested during downturns. Selling too soon can turn temporary losses into permanent ones and risk missing the recovery.

Ultimately, the question isn’t whether the market is at the “top” or “bottom,” but whether it’s the right time for you to invest. Speaking to an independent financial adviser can help ensure your portfolio aligns with your goals, time horizon, and risk tolerance.

If you’re ready to start investing with the guidance of a certified adviser, now is the perfect time to book a meeting with an adviser and take the next step toward achieving your financial ambitions.

Final Thoughts

While no one can predict market movements, consistent long-term investing — supported by expert financial guidance — remains one of the most effective ways to build wealth. Whether you’re saving for retirement, looking to grow your pension, or securing your family’s protection, working with a financial adviser ensures you have the right service and strategy in place.

Founded in 2017, Fintuity has fast become one of the only digital Independent Financial Advisers (IFA) in the United Kingdom.  Fintuity offers a wide range of financial advisory services including pensions, protection, investments and mortgage advice. The key difference is that as an exclusively digital service, we can offer significant savings and a service that is direct to you and on demand.