Starting to Invest in 2026: Why Time Matters More Than Timing

The start of a new year provides an opportunity for meaningful financial conversations across generations. At first, the conversation may focus on the ‘sacrifices’ we should make. We all have a subscription we rarely use, a bill we have never compared, or a guilty pleasure we indulge in more often than we should. Families who engage in these conversations regularly can transition to more impactful discussions. For most people beginning their investment journey, the hardest part of investing is simply deciding when to start. Markets are constantly shifting, economic headlines can feel unsettling, and uncertainty often leads to waiting for the perfect moment. Support from family can help navigate these challenges and build confidence, particularly as long-term investment success is seldom about timing. It is about staying invested and harnessing the power of compounding.

Building a strong foundation

Saving is important, but on its own it is unlikely to achieve the long-term financial goals many aspire to. Investing is where growth occurs. Three elements are essential for a successful long-term investment plan:

1. Budget: Understanding your income and expenses is not about tracking every cent or cutting back excessively. It is about identifying how much you can redirect from daily spending into investments. This sets the foundation for how much you can invest.
2. Cashflow: Income and expenses rarely align perfectly. You may be paid monthly, while your bills are quarterly. Understanding how your cashflow changes throughout the year helps ensure your investment plan is consistent and sustainable. This influences how often you can invest.
3. Timeframe: Whether your goal is a house, retirement, or something in between, establishing a clear timeline is crucial. Your timeframe informs the investment structures and asset types most suited to achieving your objectives.

Intergenerational advantage: These foundational elements are strengthened through intergenerational financial planning. Engaging with experienced family members and established advisory relationships provides valuable perspective on long-term wealth creation strategies and can help younger investors navigate complex financial decisions with greater confidence.

Choosing the right materials

The most complex component of an investing foundation is understanding the structures available to hold your investments. While many factors determine which structure is most appropriate, some of the more common options and their characteristics include:

*Including the Medicare Levy of 2%.

Please note, the table above is for illustrative purposes and is not intended as an exhaustive comparison between structures. The table does not constitute advice. 

Once you have selected an investment structure, your financial goals and timeline will help determine the type and mix of assets that are appropriate. The example below demonstrates sample portfolios for defensive, balanced, and growth-focused investors. As risk tolerance increases, portfolios generally hold less Cash and Interest Rate Securities in favour of greater allocation to growth assets such as Australian and International Shares. This is where the guidance of a professional adviser becomes essential, helping to curate a portfolio within the correct structure that aligns with your specific goals, risk tolerance, and investment horizon.

Source: E&P

Please note, the graph above is for illustrative purposes only and does not constitute advice. 

Unlocking the door to wealth

The final hurdle many investors face is psychological. Many delay investing because they fear markets are too high or that a better opportunity will appear. However, waiting for certainty often results in missed opportunities. Investing consistently reduces the pressure of trying to choose the perfect entry point and helps smooth market volatility over time.

Starting early, whatever your age, gives your wealth more time to compound. Consider Freya, a graduate establishing her career, who under the guidance of her parents and their Adviser commits to contributing $1,000 per month to a diversified portfolio. Her goal is to grow the portfolio to one million dollars. The first $100,000 takes nearly seven years to accumulate, whilst the last $100,000 takes just over one year.

Source: E&P

Please note, the above graph is for illustrative purposes only and does not constitute advice. The actual outcome will vary based on market movements, fees, tax paid, and your relevant personal circumstances. The 7% return used in this example is not applicable to all investment returns. Individual performance may also differ due to timing of entry or investment size of holdings. 

Delaying the decision to invest compresses the available timeframe and increases reliance on higher contributions or stronger returns later. In Freya’s case, if she delayed this strategy by a single year, she would need to contribute an extra $80 per month. After three years of inaction, the additional contribution rises to $278 per month, and by the fifth year it reaches $520 per month.

Overview

Starting to invest should not be seen as a single decision. It should form part of a broader financial plan, shaped by your budget, cashflow, and timeline. From there, an Evans & Partners financial adviser can provide personalised guidance to curate a portfolio aligned with your goals and risk tolerance.

Investing can feel daunting at first, and progress may be slow initially, but compounding works quietly in the background. Over time, momentum builds, and meaningful wealth can be created.