“Remember that time is money,” the United States inventor, businessman and politician Benjamin Franklin famously wrote in an essay published in 1748 titled Advice to a young tradesman.
Franklin’s point 275 years ago was that he believed there is often a financial cost when someone wastes time or delays taking action.
Delays in taking action can have a cost. But, when it comes to investing, long-term financial success is generally about time, not specific timing.
To this point, the annual Vanguard Index Chart provides some important clues. It tracks the total investment returns over 30 years of six major asset classes – Australian shares, United States shares, international shares (excluding Australian shares), listed Australian property securities, Australian bond securities, and cash.
The 2023 Vanguard Index Chart below covers the period from 1 July 1993 to 30 June 2023 and shows how a starting balance of $10,000 would have changed in value after being invested into each asset class via broad market index funds such as exchange traded funds (ETFs).