Millennial Investing – The Time Is Now!

UsMenTalkBy UsMenTalkApril 28, 20206 Minutes

OK guys, whether you’re a millennial or not, the time to begin investing for your future is always now, and it’s one step at a time. The reason that I say this is because the sooner you start investing, the more valuable the compounding effect of your money going to work for you will be. As I shared with you in my millennial investing video, a 30-year-old who begins investing only $100 a month until the age of 60, and then allows that sum total to grow for another 5 years will reach the grand total of $500,000 by the time they are 65. If you then assumed a simple annual rate of interest of 10%, this little nest egg alone would throw off $50,000 a year of retirement income without ever touching the original principal amount of 500,000.

Here’s also a simple understanding of compounding. If you wait until you are age 35 instead of age 30 to do the same thing I just mentioned above, your grand total would only grow to $336,000 by the time you were age 65.  But what if you started only 5 years earlier, at the age of 25, your grand total would grow to a whopping $1,028,000. And at a simple annual rate of interest of 10%, this little nest egg would throw off $100,000 a year of retirement income. As you can clearly see when you begin putting away even a small amount of money can make any enormous difference later on in life due to the time value of money and how long it can keep compounding.

Now I understand that many of you may be concerned about investing due to three common reasons. You may not have enough money to invest, you don’t know enough about where and how to invest, and you are afraid of losing the money you have available to invest. These are all valid and common reasons, but you do not want to let your fear control your future. I can honestly tell you that even with market failures like 2008, pandemics like covid-19, and different crises that come up, any 10-year investment in the market or longer has always produced positive returns.

After what just happened with the world and its different country economies and finances, investing money in your future retirement could not be more important. As I said before in my video, the current US deficit is expected to be $3.8 trillion in 2020 and the US has a total debt in excess of $22 trillion dollars. What this means simply put, is that taxes must go up and benefits like Social Security, Medicare etc., will probably go down.

I want to let you know that getting started is very easy. You can set up a brokerage investment account in about 10-15 minutes with companies like Fidelity, TD Ameritrade, Charles Schwab, etc. You can then subscribe to advisers like the Motley Fool, Stansbury, Gerald Celente, and so many more to get feedback and suggestions. One of the things that I also do is listen intently to CNBC and Jim Cramer. The corporate executives that come onto this channel and share what’s going on with their companies financially, plus the input from all of the commentators, along with Jim’s recommendations, have proved to be a super winning combination.

OK guys, I think I said enough to get you started. If you have some thoughts, suggestions and opinions, I want to hear about them. Please don’t hesitate to leave me your feedback below. Also, if you have other topics that you’d like me to cover that are related to invest in or anything else for that matter, let me know that as well.

Cheers to all of you 🍺!