11-02-2016, 03:34 AM
(10-27-2016, 08:10 AM)EricL Wrote: I'd also point out that buying at a good valuation is still incredibly important when starting out since you are locking in an initial yield that compounds for the rest of your investing life. Buying a utility that normally yields 4% for 3% now when it is overvalued will have a huge impact on your results 30 years down the road. Not only are you overpaying by 33% which cuts down on your capital gains, but you're also compounding at a significantly lower yield over the years as well.
Everything you've said is right of course. As a general rule I'm happy to see people 30 years away investing in anything, particularly if they are doing it consistently, knowing that at some points they will get expensive stocks and other points cheap stocks (zeroing out stock selection for the moment). I think everyone has met someone who has been "about to invest" for the last five years!