Good things come to those who can endure…
We live in a day and age where folks want results as fast as they want their microwaved popcorn. Can anyone remember the days of Jiffy Pop? We’ve become a Twitter/Facebook live universe with a demand for news to be pushed as fast as possible, standing still only long enough to complete a mannequin challenge.
So when a financial planner pulls out charts and tells us that if we start with W dollars at age X, that in 20-40 years, given a rate of return of Y, we will have Z dollars — a lot of folks will say “Okay, thanks for the information, but I’ve got to hurry up and get a ticket for tonight’s lotto drawing.”
Does the lack of patience make us bad people? Not at all — there are other, worse behaviors than impatience. But for someone concerned with investing for the future, a lack of patience can lead to missed opportunities.
I can show you better than I can tell you. Below are two charts of IFTF recommendations (Facebook and Bank of America) that show how patience and the willingness to delay gratification has worked out. There are countless other examples.
As you can see, in a 5-10 year period of time, Father Time has been very rewarding to folks patient enough to see these companies through both their good times and bad. IFTF’s approach is the following: We recognize the day to day crush of life isn’t easy to navigate. Taking funds and putting them into something that doesn’t immediately produce a reward can be daunting. But take a look at the charts above and see how patience can pay off.
We recommend the following: using your smartphone, download and sign up for a Robinhood account. Regardless of income status, decide on an amount you are comfortable allocating to your newly created Robinhood account automatically every pay period. Small amounts count too. When the $$$ amount in your Robinhood account is equivalent to the share price of a company you are interested in, buy a share.
Repeat, BE PATIENT, and watch your money grow.