There are many people who have the wrong perspective of investing. They believe that investment is for the old and rich. However, there are many benefits of investing in your early 20s.
Why invest when young? One major reason is the fact that you have time. This means that as an investor, you will generate more wealth over time. It is proven that the longer you invest your money, the more wealth you will have in the future. The second advantage of investing is being a tech savvy. An investor requires expertise, experience and confidence to know where and when to invest. According to Chris Linkas, an investor needs to question the market so that they can get the necessary information. Young investors have the advantage of researching and studying through education and financial websites, apps and social media. The online trading platforms are ideal to sharpen investing skills through online trading techniques and tools.
Linkas also agrees that young investors can learn by doing. As mentioned above, studying about a particular market will help you learn about the failures and successes of an investment. Young people can then make investment strategies that will succeed. Investing early gives you time to learn and recover from any mistake you may make. The other advantage is the opportunity to invest in oneself; this means that one can advance their skills by earning a degree and in turn acquire higher earnings in the future. The earnings are what one relies on when they are investing (http://www.spoke.com/people/christopher-linkas-fortress-3e1429c09e597c1006eb4661).
Last but not least is the ability to take on more risks. Young people have more years of earning and will therefore not shy away from investments that are more volatile and more profitable. The age of a person determines the amount of risk they can endure. An employee who is about to retire will opt for risk-free or low-risk investments (Relationshipscience).
Chris Linkas is an investment expert who specializes in corporate loans, shipping, non-performing loans, asset-backed investment, leases, commercial real estate and securities. He has decades of experience in the financial industry and has held senior leadership positions. He has worked in institutions such as RER Financial Group and Goldman Sachs.