Is age the single most important factor in investing?



When people talk about investing, one of the things that they never fail to mention is how they should start young in setting aside money for the future. Although this advice has its merits,  analysts argue that while people in their 20s hold the prime age when it comes to investing, it doesn’t mean that older people don’t have a chance to redeem themselves and start saving up for their golden years.

So does age really matter when it comes to investing?  Perhaps the question that we should be asking is: is age the single most important factor in investing?

It’s always the best decision to start in your 20s and doing so can guarantee the highest possible compound interest growth because compared to their older counterparts, young investors have more time to accumulate money and reinvest their earnings without worrying much about the risks.

However, age should not limit older people from getting started on their investment goals. For instance, people in their 30s who put off investing during their younger years can still have enough time to enjoy the rewards of compound interest since they still have (presumably) 30-40 active years to earn and save up.

For investors who decided to start in their forties, investing in aggressive assets like stocks can help them catch up. In fact, stocks should always be a part of your portfolio no matter how old you are. It’s true that at this age, people are already at the peak of their earning potential and should take less financial risks. However, they shouldn’t let it stunt their investment growth.

The lesson that we can learn from all these is that: age should always be a factor in investment decisions, but it’s important to note that investing strategies can always vary at different stages of our life.  


To know more how to properly strategize on your investments, seek a LOM Financial advisor’s help now. 

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