Investing at a young age is the best choice. There is more time for money to earn and multiply. This article will encourage you to invest early and enjoy the fruit of your labor when you reach your 40s.
This is part 4 of my Retirement advice for young folks series. In the first 3 parts, we talkedabout maximizing income and minimizing expenses. If you can stick with that, you should have some money left over to invest. Young people rarely think about retirement saving, but that is precisely the best time to invest for retirement.
Start investing as early as possible so your investment will have more time to grow. The stock market will be up and down in the short term, but historically it has been one of the best wealth generating tools over the long term. When you start investing early, time is your friend. Compound interest will work for you every year and you will be amazed what it can do over 30 years.
Stock and bond investment simulation
Let’s use my favorite retirement calculator Firecalc to see what your retirement portfolio can look like if you invest in the stock market over 30 years. I’ll invest $1,000 per month over 30 years for a total of $360,000.
Read more: http://retireby40.org/start-investing-early/