THE MOST POWERFUL FORCE
ON EARTH… IS IT WORKING
FOR YOU? (Cont'd)
Compounding is especially valuable for long-term investments. If you consider the example of the 20-year-old mentioned earlier, it takes only $50 per month at 10% to amass over $450,000 by age 65. In contrast, if you waited until age 45 to begin investing, you would have to save $313 a month at 10% to accumulate the same amount.
It goes without saying, people who start early can begin with a relatively small amount of money and have a very nice nest egg for retirement. In other words, stop making excuses, and start investing. I have a several friends my age who tell me they want to start an investment plan, but "things" keep coming up. They swear they'll get started as soon as things "settle down". Believe me -- it only gets worse, and the longer you wait, the less likely you are to ever start saving for your future. The longer you put it off, the more you'll have to save, so it ultimately never happens.I have a very close neighbor who is in his late 40's now, and has never saved anything for his retirement. He asked me the other day where he could invest some money to double it fast. Unfortunately, I didn't have an answer for him unless he was also willing to lose the money. Now, he's wishing he would have started investing a few dollars a month when he was my age… Don't let yourself fall into this trap. And if you know of any family members, friends, or close neighbors in the same predicament, give them a copy of this article. Maybe it will help spur them to action.
So, what are you waiting for? Get started on your investment plan NOW! If you really have no idea where to start, Charles Schwab is a great place. Visit http://www.schwab.com and request a new investor packet to be mailed to you. You can open a Schwab One account and begin investing a small amount each month in some no-load mutual funds. Schwab has a list of 600+ fund families in their One-Source listing. You can invest in any of these with no loads and no fees. Schwab can also help you get started with an IRA account if you don't already have one.Again, this isn't an advertisement for Schwab. I have all my investment accounts with Schwab, and have been very happy with their services. The best part is that I have instant access to my accounts through the Internet, and I can also move money around and place trades right online. However, Schwab isn't the only choice. Check with some reputable brokers and investment firms in your area. They will be able to answer your questions and help you get started. Better yet, if you have any friends or family members who are already investing and doing well, ask them for a recommendation.
Happy Investing!!!
Article by Dave Mauder of Mauder's Money Matters. Visit http://www.mauder.com for FREE "how-to" financial assistance and a subscription to the Financial Freedom Update eZine!
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