Guest post by student: A Green
Investing is the key to retirement.
When you turn 60 years old, you will likely want to retire, which isn’t possible if you don’t have enough money to live off of for the rest of your life. The most proven way to get the most out of investments is to start early. This is particularly important if the investment has compound interest. Compound interest is interest upon interest. So, the earlier you invest the more time your money has to grow.
Another important part of investing is the risk of the investment. Not all investments are backed by the FDIC, so none of the money is guaranteed. Although most investments are pretty safe some, such as the stock market, can be rather risky. Speaking of the stock market, investing in stocks can be very rewarding. But, there are two major rules when investing in stocks. Diversify the companies you invest in, and don’t day trade. Day trading is trading stocks for short periods of time. There has never been a 10 year period when the market has gone down.
If you follow these rules, you can retire early and comfortably!