Chris Linkas Explains The Power of Early Investing

Chris Linkas is the head of European Credit in London, and the firm has twenty employees. Typically the European Credit Group focuses on investment opportunities in the United Kingdom, Ireland, Scandinavia, Benelux, Switzerland, France, Germany, Spain, Italy, and Greece (Discogs). Chris Linkas is now breaking down the five advantages that young investors have if they choose to start investing early.

The first and probably the most important advantage that young investors have is that they can take advantage of compound interest, also known as the time value of money. Money grows at an exponential rate, because of interest that can be earned on the interest. Young investors who choose to invest early can take advantage of this effect, which has been called the 8th wonder of the world by Albert Einstein (https://www.kirkland.com/sitecontent.cfm?contentID=226&itemid=11779).

The second advantage that investors have in their twenties is that they can take advantage of a higher risk strategy or portfolio. This is because they are further away from retirement, so they can afford to take more risk, and that will lead to higher returns over time.

The third advantage that young investors have is that they can learn by doing. The risk that the young investor can take is that they can experiment with different strategies. The failure of an investment to work out is only a learning experience for the youth, but it could be a huge mistake for an investor that plans on retiring within five years.

The fourth advantage that young investors have today is their technology. This technology can help them learn about technical analysis and fundamental analysis. Technology has also lowered transnational fees so that investors can keep more of their hard earned money.

The fifth advantage that young investors have is that they can increase their earning power through education and learning.

The bottom line as mentioned by Chris, investors who start young can take advantage of compound interest to build a lot more wealth than those who start late.

 


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