What is the key to a good retirement? According to financial expert Christopher Linkas, the secret to a good retirement lies in starting to invest for retirement while you are still young.
Now, it is true that most people who are young are totally not thinking of planning for retirement. Most people start thinking about it in their forties or even only in their fifties. At that point, they realize that they do not have a solid and proven plan for how they are going to be financially secure during retirement, and so they start frantically searching for ways to save up a large amount of money in just a short time. Of course, they are often not successful and end up having to rely on the small checks that they get through social security.
Instead of waiting that long and then dealing with the anxiety of not being prepared for retirement, Christopher Linkas recommends that you start investing while you are still young. There are just so many advantages of investing while you’re young.
The first advantage is that you can earn a lot of extra money through what is known as compound interest. Through compound interest, you can turn small investments into large investments over the course of a few decades, without even investing more money into it. Even if you get just a five percent return on your investment, you can turn ten thousand dollars to seventy thousand dollars over the course of forty years. In reality, however, you will often earn a lot more than a five percent return on investment, as long as the economy is doing well and you are investing in a diverse set of stocks.
Christopher Linkas says that other advantages of being young include being able to take on more risk and having the opportunity to learn from your mistakes. The thing with being young is that even if you do take on risks and lose money because of your mistakes, you can still land on your feet again, as opposed to when you are older.