From
Your Perspective:
Early bird retirement investing
Long-term investing
One of the biggest advantages you as a young investor
have on your side is time. One reason is that financial markets
tend to go through cycles — rising for a period of time
and then falling, and then rising again, and so on. A short-term
investor might run into real problems if the stock market suffers
losses in a particular year or more. A long-term investor, however,
can expect to ride out a downturn, benefiting from the likelihood
of the market’s eventual upswing.
Another advantage of investing early in life is
that making a few poor investment choices doesn’t have to
have a big impact on your future wealth. You’ll have enough
time to learn from a mistake and make better choices, rebuilding
capital over time.
1. Make a financial plan, if you haven’t already.
Retirement will be only one of several goals you have.
By writing them down, you’ll be able to see
what you need money for, and when.
2. Do some research
into the basics of investing. You can find information
online — here at Path to Investing and on other financial
Web sites — or ask your bank or a brokerage
firm for introductory literature.
3. Read
financial articles you come across in the newspapers
and magazines you already read and keep up with current
events in the investing world.
