I often hear that people can afford to lose money when they are young. People tend to invest in very high risk investments like individual stocks or crypto currency when they are young. This needs to stop. Money is far more valuable invested while you’re young than when you are old and you cannot afford to lose it.
For example, every $1,000 saved and invested in a broad market index earning on average 7% a year over 40 years is $15,000.
Every $1,000 invested when you’re older, compounding for only 10 years, results in only $2,000.
Every dollar you invest in your twenties is far more valuable than what you invest later on in life and when you are young your investments should be diversified and “normal.” You can afford to take large risks later in life after compounding has worked its magic.
Time for me to stop ranting. Just wanted to make sure people here have enough in retirement.
Submitted March 06, 2018 at 06:23PM by TheHypeKiller http://ift.tt/2oSVZ2O
