Faith & Finance

Rob West

The Cost of Market Timing

July 13, 2020
00:00 27:45

Just about anyone who’s put a dollar into the stock market has wondered, “Should I hold or should I sell?” But history shows this is one case where doing nothing can pay off big time.

Of course, we’re talking about timing the market, or trying to, based on what stocks are doing today. Financial planner and teacher Rob West has some figures that show how trying to predict the market could cost you a fortune. Then it’s your calls at 800-525-7000.


•          Proverbs 21:5, “Steady plodding brings prosperity; hasty speculation brings poverty.” That verse should be both a warning and a comfort to us. It addresses two human emotions that will derail your long term investing strategy fear and greed.

•          How do we avoid missing those big days in the market? The same way you take the sting out of the market’s worst days, by sticking to a long range investing plan, by dollar-cost-averaging, which most investors are already doing.

•          If you bought $1000 worth of an S&P 500 index fund in 1970 and did absolutely nothing with it. By 2019, that $1000 would have turned into nearly $140,000.

•          But if you tried to time the market, either to take profit or prevent a loss, and you missed just the best five days of the S&P during that period, your stock would be worth only about $90,000.

•          If you contribute a consistent amount each month to your retirement account, you’re automatically dollar-cost-averaging. That could be in stocks, mutual funds or bonds and you simply ignore what the market is doing on a daily basis.

•          By investing a consistent amount each month, you’re automatically buying fewer shares when stocks are expensive. But then when the market’s down and you’re still contributing the same amount each month you’re correspondingly buying more shares.


On today’s program we also answer your questions:


•           I bought furniture from a company and got behind on the payments. It ended up going to collections and getting discharged. I want to make it right, but how can I do this?

•           I was married to a pastor and our marriage ended. I am now a paid pastor and I live in a parsonage. I have about 10 years until I retire. Should I invest in a home of my own, or continue to live in the parsonage?

•           How do I determine what organization to give to? I want to give to one that is doing Kingdom work.

•           I am tied into a contract with a life insurance company. I need to get money out to use, but I will be penalized. Is there a way to get out of this?


Ask your questions at (800) 525-7000 or email them at Visit our website at where you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources.

Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

Featured Resources From Faith & Finance

Listen to Faith & Finance on Amazon Echo and Google Home Learn How

About Faith & Finance

Faith & Finance is a daily radio ministry hosted by Rob West. The program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

About Rob West

Rob West is the host of the nationally syndicated radio program Faith & Finance heard on more than 900 radio outlets each day. Rob also serves as the President of Kingdom Advisors, an international community of financial professionals who are specialists in delivering biblically wise financial advice. Rob serves as primary spokesperson for the organization and gives leadership to organizational strategy.

A radio veteran, Rob previously co-hosted a live, call-in, financial radio program with his father from 1998 through 2008 at WAFG, Fort Lauderdale, FL. Rob has dedicated his professional career to working at the intersection of faith and finance having led a successful faith-based financial services firm, serving as the host of several radio programs on a biblical approach to finance, and speaking frequently on the topic. Rob and his wife, Julie, live in Marietta, GA with their four children.


Contact Faith & Finance with Rob West

Mailing Address
Faith & Finance
P.O. Box 471526
Tulsa, OK 74147