What
Are The Benefits Of Starting Investment For Retirement Early?
Q. What Are The Benefits Of Starting Early Investment For The Retirement?
A.
Retirement planning is a long-term strategy and requires patience. The longer
you invest towards your retirement goal, the higher corpus you would be able to
get in the end. For example, if you want to retire at the age of 60, then by
starting investment at the age of 21 you get 39 years to grow your corpus, thus
even a small investment can compound to a significant corpus by the time you
retire. However, if you start late such as after 35, you would get only 25
years to build your retirement fund. In this case, you might have to increase
the amount of your monthly investments, which might be stressful.".
Another
benefit of starting early investment is that you get sufficient time to manage
the risk. When you are young, you can take more risk and grow you fund at a
very high rate as compared to an older age when you need to be more calculative
on your risks. The more investment time you have, the greater flexibility you
have to make changes in your investment portfolio.
Happy Investing
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