Have you been hearing all the buzz about investing? You may be wondering if it’s a good choice for you and if it’s even worth your time. There are benefits to setting up an investment strategy; benefits that, the sooner you can get involved, the bigger your return could be.
There is a lot of buzz in the media today about investing and how it can be used to build a financial strategy.
With a good plan in the works and a solid understanding of your financial goals, investing can help you reach those goals, no matter what age you are.
When it comes to things like investing, there is no age criteria, but the younger you can start setting up your portfolio, the better.
The idea of investing is that you put your money into investments, like stocks, bonds, funds and more, and over time, if they are a healthy investment, they will accrue gains that add to the value of your account.
If you’re a young person, there are some reasons why you should be considering an investment strategy right away. Even if you don’t have a lot to start with, starting now could make a substantial difference for you later.
Here are some benefits to starting investments as soon as you can, especially if you’re young:
The first, and perhaps the most important benefit you have as a young investor, is that time is on your side. When it comes to compound interest (the principle that makes investments work) the more time your money must compound, the greater your account value can grow. Giving your account the most time it can have to grow, could make all the difference between retiring with thousands of dollars versus a few million. Smart investing takes all that into consideration and is in it for the long win, like a marathon. Use your age to your advantage and give yourself the most time you can possibly get to build interest. For those who may be worried they’re too old or they’ve missed the window, don’t worry, you haven’t. You can still earn decent returns if you choose the best investment options for your age and financial situation. Just be sure you do your research and consult a financial planner to make sure you’re considering all your best options.
Another benefit to investing young is that you have the flexibility to take on a little more risk with your investments. Every investment carries with itself a measure of risk. Risks mean that your investment could rise extremely high very quickly, which is great if you want to make good gains, but it can also drop low very quickly, causing you to lose money. If you want to take on a little more risk to make more gains, you must keep in mind that if you lose a lot of money, it will take more time to make that money back. As a young investor, you have more time to recoup losses you may incur, and potentially make your money back plus more. Market crashes and corrections do occur, so don’t think that when your account shoots up it will remain there forever. Your account could dip rapidly, but the more time you have on your side, the more you’re likely to recover.
As a young investor, you also have modern technology on your side. There are a myriad of investment companies, web platforms, and apps out there to give you the ability to start investing simply and easily. Please make sure, if you start on your own, you pay attention to the risks associated with investing and do your research before agreeing to buy and sell on a specific platform. Some are more recognizable than others so make sure you’re choosing to do business with a company you can trust.
Another benefit to starting to invest young is that you can take time to learn about buying/selling and overall market strategy. You have an opportunity to investigate different investment choices and set up custom plans. It will even help you decide if it’s something you enjoy, or something you would rather have a professional handle.
Please keep in mind that we are not offering investment advice.
Of course, investing has its risks and it’s extremely important to also get connected with a financial advisor who can help guide you in your investment strategies and building your portfolio.
This works regardless of your age and having an investment advisor can really help you navigate the exciting world of investing. Here are a few reasons why you might consider working with a financial planner:
They are familiar with taxes, and even though they may not be CPA’s they can offer you important tax insight on how your investment performance can affect you when it comes to paying taxes.
Financial planners can help you with forecasting and active managed accounts. They can help you choose the right accounts, and, if you’re in a healthy investment portfolio, they may offer to manage your accounts for you so you can be sure your account is in the right hands.
Financial planners offer you experience that is always helpful to your situation. They can supply important insight into not only your investment strategy, but your overall financial strategy as well.
You may be feeling eager to get your feet wet on your own, but as your account grows, you’ll want to get someone experienced to help you manage your money as you build a strategy and portfolio.
Triangle offers financial planning services through Triangle Financial Group, so if you wanted to chat with our planners on setting up a financial strategy, you can visit trianglefinancialgroup.com to learn more.
