A person who begins investing at 25 will be better situated for retirement than their friend who starts investing at 30, even if they make the same choices and get the same returns on their investments. The extra five years can make a huge difference.
Some experts believe that many young people have shied away from the stock market because the economy has been so poor for so long. The same experts say that these young investors are making a big mistake. The current state of the market is much like the current state of real estate. The economic crisis has created some great bargains, and if investors are willing to buy now and hold on for a while, they could reap great rewards.
Experts also point out that today’s young people are unlikely to have pensions and probably won’t have any Social Security or Medicare benefits when they retire. With such a bleak future ahead, it’s even more important to start saving now.
About the author: George Divel is President of Investments and Financial Advisor at Capitol Securities Management, Inc. Securities and advisory services offered through Capitol Securities Management, Inc. Member FINRA & SIPC. A registered Broker/Dealer and Registered Investment Advisor.