Is it too late to start investing? | Investment
Retired people may think it’s too risky for them to invest. But if you have money saved beyond your emergency fund and don’t think you’ll need it in the next five years, investing it, regardless of your age, can help you enjoy the returns. long-term market and build wealth throughout retirement.
Another misconception people may have is that hoarding money is a good idea.
Adrianne Yamaki, a certified financial planner and founder of Strategic Wealth Capital in San Francisco, saw it with her mother, who preferred cash in the bank to stocks.
But money does not keep up with inflation.
“Even if you have the same dollar, it buys you less and less. And over a decade or two decades, you really decrease your purchasing power,” says Yamaki.
Know your strategy
It’s never too late to start investing, but that doesn’t mean you’ll have the same investment strategy as your 22-year-old niece. Young people have more time to weather the ups and downs of the stock market over time.
People nearing retirement or already retired may want to take a different approach.
“Those approaching retirement age (around 55 to 64), but who haven’t yet retired, still have time to build up their retirement savings,” Kendall said. “I recommend starting by increasing your 401(k), TSP [thrift savings plan]IRA or other retirement plan contributions if you are not already maximizing these investments.