Best Time to Start Investing for your Retirement
June 20, 2011 Leave a comment
Maybe this question sometimes pops up in your mind?
When is the best time to start investing for your retirement?
As a general rule of thumb, you should start investing as earlier as possible. Actually, it is wise to build your investment portfolio at the age of 20 rather than 30. The earlier you start, the better your chance in growing your basket of cash that will sure to sustain you over the retirement.
In investment, time is your greatest ally. The earlier you invest; the chance of making your money grow through the power of compound interest will be on your side.
The other benefit of investing early is a better chance of riding out bad times in the market. Example : When you start investing 5 years before your retirement and there is some sort of financial crisis in the middle of your investment period. What yield would you expect on your investment? The worst is you are at a losing side when you redeemed it. However, if you have a longer investment horizon your greatest ally (time) will help you ride out this bad financial crisis and redeemed it later after the market recovers and you have realized earnings.
The best time to start investing for your retirement is as soon as possible.