December 28, 2007, Newsletter Issue #78: The Benefits of Investing while Young

Tip of the Week

There are many benefits to retirement investing while you are young. Many people mistakenly delay investing for their retirement until it is too late to earn a good return on long-term investments. Here are some benefits to investing while young.
Save money on taxes by contributing to a 401k plan or other employer based plan, you will lower your taxable income and save money on the amount of taxes you pay.
Have a lower savings payment- you should begin your retirement investments with a savings account. By starting young, you will contribute a lower monthly payment for a longer period of time as compared to a higher payment for a shorter length of time to reach the same goal
Compounding- the longer you save, the more your principle will compound. You can then earn on your principle and interest, earning greater money
Matching contributions from your employer- when you begin your employee sponsored plan while young, your employer may match your contributions. This is an opportunity advantageous to the young worker who will contribute to their plan for a long period of time.
Take more risks- the younger investor will invest in high risk investments which yield higher rewards

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