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Investing for the Young and Old07.14.15

Some people may not believe it, but the type of investing that you do will be based heavily on your age. The age is a factor because of time that it takes money to grow. It also plays a factor in the amount of time that you have to work. The type of investments that you make and the way that you invest all comes down to your career start and the time you have left.

For example, a person that starts working early and investing early can go aggressive. They can take on the stock market even if they know little about it. The trial and error in investing is the time where one gets a foundation on the stocks that may be good long term investments over the stocks that are not worth keeping. It is during this time that a person can have risky investments, earn large returns on their investments and benefit greatly from compounded interest.

A person that has started investing early in their career will have a lot of time to truly build up their earnings even when they lose money. When a person is older they can look at index funds and mutual funds to lower their risks. It is wise to max out with the 401K at a young age and go aggressive, but the portfolio should be changed to moderate as a person gets older. Ideally a person is set to make large sums of money at an early age. When they get older, however, they will find that it is too risky to hold on to high risk stocks and investments that could greatly reduce the earnings that they have gained. This is why it is essential to move away from the investing risk game as one ages. That is the ideal way that people should get into the investing. There are times, however, when it is going to make a lot more sense to stay in a risky investments as an older person. This is when a person has failed to invest anything until later in life.

Later starters that have never invested much should heed the advise of financial expert Igor Cornelsen because it doesn’t make a lot of sense to try to start with moderate investments because they have not accumulated much. They don’t have the advantage of compound interest. That is why they have to spend more time investing in the risks in order to get a greater return quickly. Most people would say that this is one of the harder things to do. That is why investing at a young age is so important. A person that waits until they are older will have to save twice as much for investing.

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