Bookkeeper’s Recomendation on What Twentysomethings Should Know About Investing

On occasion, many clients find themselves with a substantial check after their tax preparation and ask for a bookkeeper’s opinion on what to do with the money. While some of the more experienced individuals know that a little money now can become a lot later, there is still that group of twenty somethings to whom investing is the last option. However, even in a down market and even if you aren’t a bookkeeper, there are a few simple suggestions worth reading. In that spirit, below is a list of things every twenty something should know about investing from Industrial Space.

You are in your twenties, life is good, you are either just finishing college or a few years into the working life perhaps. Common wisdom advises people in your position to begin an investment portfolio now, as this greatly reduces the risk that the investor will have to take before retiring. Then again, not only does getting started investing early reduce your risk, but it also increases the opportunity for your money to grow and multiply. Although many young people have watched their parents take losses in the markets over the last ten years, having a good investment portfolio is still the best way to ensure that you will have a comfortable retirement.

1. To Retire Rich, Start Investing Now

If you get a head start on investing early you will have much more success than if you start later in life. Let’s say, for instance, that an individual who is 25 wants to retire by 65 and invests $7,400 dollars a year, at a 10 percent interest rate, this individual would retire with 3.26 million dollars.

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