When it comes to investing as a beginner, it can be tricky to know when to start and how much to invest. That’s why I’ve put together this video of investing tips for beginners.
Let me show you guys why time is absolutely crucial when it comes to investing.
A 10 year difference could mean millions in retirement.
Investing Tips: Why Timing Matters
So let’s take a look at this. So what we’re noticing in this first example is current principal’s $10,000. So we’re starting off with $10,000.
Annual addition is $12,000, meaning $1,000 per month.
And we’re assuming this person’s retiring at 65, starting at 20. Hence, why there’s 45 years to grow. With 10% returns compounded annually.
You can see here, the person starting at 20 would have $10.2 million in retirement. Whereas another person that, let’s say, started at 30 and retired at 65 with those same numbers, they would have less than $4 million.
Time matters.
And sure, it might be hard to invest that kind of money at a young age. But if you can’t do 1,000 a month, that’s completely okay. Do $100, do $200.
Don’t just push investing off. You’ll regret it in the long-term.
What do you guys think about that? Follow along for more.
Author Stas Serfes 