Time is ‘the greatest financial asset,’ says IRA expert

Ryan Ermey | CNBC | March 31st, 2020

In other words, the sooner you invest, the more time your money has to compound. If you can afford it, you should ideally make the maximum contribution to your IRA in January of each filing year, says Sam Huszczo, a certified financial planner and founder of SGH Wealth Management in Southfield, Michigan.

“If you get in January 1 as opposed to waiting until April of the following year, you have an extra year and four months in the market,” Huszczo says. “For young people, it’s not about timing the market. It’s about time in the market.”

That isn’t to say you shouldn’t bother making a contribution for the prior year if, for example, you’ve received a windfall in the form of an economic stimulus payment. Making a contribution now for 2020 can be a great way to catch up, and you’ll still have plenty of time to work on maxing out your 2021 contributions.