5 Reasons to Invest Now, and 4 Reasons to Wait

With all the wild ups and downs the stock market has experienced over the last few months, it can be a daunting time to invest. But despite its volatility, investing in the stock market remains one of the best ways to build wealth over the long run. Whether you should invest right now, though, depends on several factors. In some cases, investing now is a wise financial move that can result in long-term financial gains. In other scenarios, you're better off waiting.

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We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

The earlier you begin saving, the easier it is to build a healthy nest egg. This is thanks to compound interest, which helps your savings grow exponentially the longer they sit untouched in your retirement account. If you put off investing, you'll need to save more each month to catch up later. And if you wait too long to get started, it may become impossible to reach your retirement savings goals.

ALSO READ: 1 Thing Buffett Says You Should Do Before Investing Money Into Stocks

The average American expects to need nearly $2 million to retire comfortably, according to a recent report from Charles Schwab. Although not everyone will need that much to retire, you may need to save more than you think. Retirement will likely cost several hundred thousand dollars, if not well over $1 million. By investing now, you'll give yourself a better shot at achieving that target.

After its tumble earlier this year, the stock market has been soaring and reaching all-time highs. Although nobody knows exactly what will happen in the future, if stock prices continue to climb, now is a good time to invest. By getting in the game now, you'll reap the rewards later if the market continues to surge.

Although it can be a good idea to invest now to take advantage of the market’s explosive growth, it's also important to keep in mind that timing the market is nearly impossible. If you're waiting for the absolute perfect opportunity to start investing, you'll be waiting forever. So your best bet may be to dive in now because nobody knows exactly what the future has in store.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

In truth, it may not matter when, exactly, you begin investing as long as you're investing for the long term. There will be ups and downs no matter when you start investing, and if you're going to keep your money in the stock market for many years (or even decades), a few downturns here and there won't make a significant difference in your overall savings.

ALSO READ: 3 Stocks to Get You Started Investing in 2020

Although there's a chance the market could continue to surge, there's also the possibility that another downturn could be looming. If you're investing for the long term, this shouldn't matter. But a market downturn can be stressful, and if you're concerned you may panic-sell as soon as stock prices begin to drop, you may be better off waiting until the market recovers to invest.

Investing for retirement is important, but right now a solid emergency fund should be one of your top priorities. If you don't have enough saved to cover at least three to six months' worth of living expenses, it might be a good idea to focus first on building a solid stash of savings before you invest. After all, the last thing you want is to invest in the stock market and then have to pull your money out in a month or two if you're slammed with an unexpected expense.

High-interest debt, such as credit card debt, can be incredibly expensive if left unchecked. With sky-high interest rates, you can end up paying hundreds or even thousands of dollars in interest alone by the time the debt is paid off. If you invest right now instead of putting more money toward your debt, you could potentially end up paying more in interest on your debt than you're earning on your investments. For that reason, if you're saddled with loads of high-interest debt, it may be wise to pay off the bulk of that debt before you begin investing.

5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.

Because the stock market is so volatile right now, it may not be the best time to invest if you only plan on keeping your money in the market for a short period of time. If you invest now and the market crashes, your investments may not recover by the time you need to pull your money out. So unless you can keep your money invested for at least several years (or, ideally, a decade or more), it may not be the right time to invest.

ALSO READ: 3 Stocks to Buy and Hold for Decades

Money is tight for millions of U.S. households right now, so it's important to prioritize your financial responsibilities accordingly. In many cases, it's best to start investing ASAP to give yourself as much time as possible to prepare for retirement. But in other scenarios, you may be better off focusing on other financial obligations first. Whether you choose to invest now or wait, it's wise to consider the long-term implications of your decision.

Katie Brockman has no position in any of the stocks mentioned. The Motley Fool recommends Charles Schwab. The Motley Fool has a disclosure policy.