Young Investors: Time Is On Your Side

By Raymond J. McCaffrey, CFA, Chief Investment Officer and Managing Director for Cypress Capital Management, a subsidiary of WSFS Financial Corporation

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Reading Time: 3 minutes – Posted: November 2020
With age comes wisdom, but in investing, it is wise to invest before you age. In a recent WSFS Wealth survey of consumers in the greater Philadelphia region and Delaware, two-thirds of young people (67%) are concerned about outliving their money.

To overcome this fear, start investing at a young age and invest on a consistent basis to help achieve reasonable savings and net worth by retirement.

Oil prices up. Gold Soars. Great Depression. Market Crash. The 20th Century and the first 20 years of the 21st Century have seen its share of ups and downs. World Wars. 9/11. Covid-19. There always seems to be a reason to wait for a “better time” to invest in the markets.

Despite all these setbacks, the markets are currently near all-time highs.

A a young investor, there is almost NEVER a reason to not invest in markets. In the same WSFS Wealth Survey, young investors are the most risk tolerant, with almost half (46%) having a greater appetite for risk since the pandemic.

If you begin to invest at a young age, regardless of the current economic environment, the power of compounding investment returns over a lifetime should go a long way in helping you achieve your investment goals.

According to the WSFS Wealth Survey, over 66% of young investors plan to increase their investing in the next year.

Don’t delay, do it now! Why?

Looking at data going back to the 1930s, Wall St. strategist Savita Subramanian found that if an investor missed the S&P 500’s 10 best days in each decade, total returns would be just 17%, significantly below the over 16 THOUSAND percent return for investors who held steady through the downturns.1

It’s time IN the market, not timing the market that should earn the highest returns.

Young people are confident in their knowledge about investing and more than 4 in 10 (44%) do their own investing per the WSFS Wealth Survey. The internet has certainly provided endless amounts of free investment advice and online investing is easy to transact.

This advice is helpful when markets are calm, but what happens when markets become volatile? Fear can trump common sense when markets are crashing leading to rash and often costly investment decisions.

If you are a young investor who may panic in difficult markets or you are not as confident in your investment acumen, an advisor with experience or wisdom (or both) can help you develop a plan, commit to consistently invest in the market and “stay the course” with current investments when markets are turbulent. This approach should help to ensure that your savings and net worth are there when you need them.



About the Author – Raymond J. McCaffrey, CFA®
Raymond J. McCaffrey, CFA® is the Chief Investment Officer and Managing Director for Cypress Capital Management, a subsidiary of WSFS Financial Corporation. Ray has over 30 years of investment experience managing institutional, mutual fund and high net worth accounts. Ray graduated, cum laude, from Villanova University with a B.S. in Economics. He received an M.B.A. with a concentration in Finance from Carnegie Mellon University Tepper School of Business.


1 https://markets.businessinsider.com/news/stocks/stock-market-strategy-timing-long-positions-coronavirus-volatility-biggest-gains-2020-8-1029544867



This article is provided by Cypress Capital Management, LLC ("Cypress" or the "Firm") for informational purposes only. Investing involves the risk of loss and investors should be prepared to bear potential losses. Past performance may not be indicative of future results and may have been impacted by events and economic conditions that will not prevail in the future. No portion of this commentary is to be construed as a solicitation to buy or sell a security or the provision of personalized investment, tax or legal advice. Certain information contained in this presentation is derived from sources that Cypress believes to be reliable; however, the Firm does not guarantee the accuracy or timeliness of such information and assumes no liability for any resulting damages.

Cypress is an SEC registered investment adviser that maintains a principal place of business in the Greenville, Delaware. The Firm may only transact business in those states in which it is notice filed or qualifies for a corresponding exemption from registration requirements. For more information about Cypress’ registration status and business operations, please consult the Firm’s Form ADV disclosure documents, the most recent versions of which are available on the SEC’s Investment Adviser Public Disclosure website at www.advisorinfo.sec.gov. Cypress is wholly owned by WSFS Financial Corporation.



  • investing
  • money management
  • retirement