Shownotes Transcript
In this episode of the iWealth Podcast, Brad Connors and Matt dig into one of the most common financial questions people face: “I have some extra cash—what should I do with it?” Whether it’s an inheritance, a recent business sale, or savings you’ve built up, knowing when and how to invest that money can feel overwhelming.
Brad shares insights from years of working with individuals in this exact position and explains the mindset shift required to move from hesitation to action. Most people, he says, are more risk-averse than they think. Even if they want their money to grow, they’re often hesitant to act—especially when the fear of loss looms large.
Using a simple example—someone receiving a $100,000 inheritance—Brad walks through the real concerns people have. “What if the market drops right after I invest?” is the fear he hears most often. Matt jokes that his gut reaction would be to go to the casino, play roulette, and hope for red or black to double the money—highlighting just how uncertain investing can feel when you're not sure where to start.
But here’s the key insight: statistically, you’re better off getting your money into the market as soon as possible, especially if your timeline is long-term (10+ years). Brad discusses the difference between “timing the market” and “time in the market,” a crucial concept for anyone considering when to invest. Studies consistently show that trying to perfectly time the market is nearly impossible—and missing just a few of the best days can significantly reduce your overall returns.
However, Brad also acknowledges that emotional readiness matters. If a 10% dip in the market would cause panic or lead someone to pull their money out prematurely, then a dollar cost averaging strategy—investing gradually over time—might be the better choice. He emphasizes the importance of asking yourself, “If my account goes down $10,000 tomorrow, can I still sleep at night?” That answer can help determine whether you should go all in or ease in more cautiously.
He also revisits the concept of using economic indicators like the investment “speedometers” discussed in previous episodes to get a visual on current market trends. These tools can help gauge whether the current environment is favorable or risky and guide your investment timing strategy.
The takeaway? Don’t let fear paralyze you. Talk to an advisor, understand your risk tolerance, and make a plan. In most cases, getting your money working sooner is better than waiting for the “perfect” time—because the perfect time rarely announces itself.
Whether you're sitting on extra cash from a major life event or just wondering what to do with savings that are growing stale, this episode gives you a grounded, practical way to think it through.
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