Everyone talks about the importance of investing early in life. It’s true that starting early can give you more time to play around with your strategies, but it is never too late to start investing. Whether you’re investing in stocks or real estate, you can still see a return on your investment that will help you when you’re ready to retire. Let’s look at why it’s never too late to start investing.
It Adds Up Faster Than You Think
Let’s say your employer matches your contribution up to three-percent. If you make $1,000 per week and invest 3% of your paycheck, that’s $30 per week, which your employer matches. This means you’re having $60 per week added to your account or $240 per month. After 20 years, you’ll have over $57,000 in your account BEFORE you consider the rate of return on your investments and any increases in salary.
You Can Make Catch Up Payments
If you’re over the age of 50, you can make catch up payments. You can invest an additional $1,000 per year into a traditional IRA. If you have the means to do so, you’ll be able to make a bigger difference than you would have thought possible.
You May Not Retire at 65
People are living longer and working longer. This means that while you may be in your 40's or even in your 50's, it’s not too late. You may decide to work into your 70's. Imagine how much money you may be missing out on by not investing now. It’s not too late.
You May Have More Money to Invest
When you were younger, all of your money may have gone to a mortgage and other bills. If you’re at a point in your life where you’re debt-free, you’ll have more money to invest. What better way to use that money than to create a comfortable future for yourself?
There is never a bad time to invest in your future. Even if you have kids that want to go to college, you should be focused on your retirement. If you haven’t started investing, it’s time to get started. Twenty years may not seem like a lot of time, but you’d be surprised how much money you can save in that amount of time. Not to mention that you may decide to work past the age of sixty-five.