In times of volatility or uncertainty a common question from clients is : “ Should I invest now , or do I wait for a better time ?” The cynic ’ s view is perhaps that there is never a good time to invest as there is always something to worry about . However , we know there is an opportunity cost of not investing , particularly given the current inflationary pressures , but it ’ s important we help clients understand that short-term worries shouldn ’ t over-ride their long-term objectives . Einstein is rumoured to have said that “ Compound interest is the 8th wonder of the world – he who understands it , earns it … and he who doesn ’ t , pays it ”. The simple message is , when it comes to investing , regardless of how volatile markets may seem to be , the earlier investors can start , the better . For example , we ran a study1 that compared two investors , each saving $ 1,000 a month . One started in 2004 and the other in 2007 . We ran it to the end of 2021 . The investor who started in 2004 saved an extra $ 36,000 into their pot ( by starting three years earlier ), but by the end of 2021 the earlier investor had a pot worth $ 133,000 more – having only put in an extra $ 36,000 . A great example of the power of compounding and the difference a delay in starting could cost in the long run . But what about the worries your clients have of staying invested during falling markets , as short-term views can perhaps over-ride the longer term ? We know cash can be seen as a safe haven when there is uncertainty , as the value doesn ’ t appear to change from one day to the next , hence the question ‘ should I stay invested ?’ What does change though is what cash can buy as its value gets eroded by inflation . Fuel is a great recent example that clients are all familiar with . A litre of unleaded was around £ 1 in June 2020 . It ’ s now up around the £ 1.50 mark . Let ’ s think about the behavioural aspect of this as well . Humans tend to avoid uncertainty . We don ’ t deal with it well . Cash brings certainty . It also brings a feeling of control . As the amount of cash in a savings account doesn ’ t really change from one day to the next , we feel in control of it , even if we aren ’ t seeing the impact of inflation on purchasing power . Benjamin Graham , author of The Intelligent Investor , put this another way . He said : “ You will be much more in control if you realise how much you are not in control ”.