Why Time Matters in Investing
Don’t you love the cheesy, old-couple-walking-along-the-beach shots you see in the ads for many retirement funds? They are sweet, and they look so happy, but they make me think fondly of my grandparents – not about revving up my retirement savings.
I love when new customers tweet us excitedly: “My @Betterment account has already doubled the returns I was seeing in my savings account!”… but I try to remind them that the timing is too short to give any real indication of the account’s performance (I know, I know. What a drag).
I can’t say it enough –
Time is incredibly important in investing.
Last week, Matt Krantz from USA Today wrote about a common investing conundrum: why did a certain company’s stock price fall, even though it reported stronger earnings than anticipated? This is surprisingly common, because there are many factors influencing price in the short-term.
Investor sentiment (and subsequent actions) plays a huge role in shifting stock prices. Company announcements, economic data, earnings estimates, inflation, exchange rates, world events, and hype around a hot company are all factors that can drive a stock up or down.
A company’s earnings, growth and cash flow will ultimately guide its stock price, but it’s important to remember the influence of external factors. Stalking the stock market can be fun, but set-and-forget is a much better approach for gaining long-term returns.
Get All the Returns You Deserve
We set out to make investing more efficient—and we have. With our platform, your investor returns can get a boost of 2.66%.
The Difference Between Vanguard and Betterment
I’ve been asked a lot in the last few months in the transition from my old role at Vanguard to my new role as Chief Growth Officer at Betterment – what’s the difference between the two companies?
Thinking in Bets with Annie Duke
For most people, it’s difficult to say “I’m not sure” in a world that values and, even, rewards the appearance of certainty.
How would you like to get started?
Your first step toward a smarter investing future starts here.
Create a Betterment account
Go ahead and join the smart, modern way to invest.
See what we can do for you
Tell us a bit about yourself, and we'll show you the benefits of investing with us.
Get a free investing checkup
Help us get a sense of your investing approach and see how you could improve.
Transfer a 401(k) or an IRA
Move an existing retirement account into a Betterment IRA.
Download the mobile app
Enjoy the Betterment experience anywhere on the go.