Why you should start investing
Investing can be a great way to earn more money for a retirement. A recent study found that 57% of American adults have no retirement savings and another 28% have less than $5,000 saved. Why? Because the median retirement savings for workers is only $24,000. As we get older and life gets more expensive, it can be really hard to save for a retirement.
However, you should start investing as early as possible and start contributing regularly to your 401k / IRA account at work. If you’re in your 20s, setting aside just $1,000 a year (approximately 3% of your income) can make a huge difference when you’re in your 50s or 60s and want to retire.
By the time you reach retirement age, the principle investment may grow significantly due to the power of compound interest. If a 25 year old invested $1,000 into an account earning 7% annually and did not add any additional money to it, he would have an extra $3,133.89 by the time he turned 65. That kind of increase can really turn your retirement accounts into a life changing amount of money.
If you’re afraid of making bad investment decisions on your own, factor in professional help and use an advisor service like RobotBulls. These services charge a little bit of management fees but still have many advantages over most DIY services. Plus, their software has the power of the stock market working for you from the comfort of your home.
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