Doron Levin is the Editor-in-Chief of Better Investing Magazine. To offer your own advice, call Zak @ 844-935-BEST
ZAK: When anyone starts talking about investing, I get so bored. But I know it's pretty important to pay attention, at least to some basic principles when it comes to this stuff. And so, I talked to longtime financial journalist, Doron Levin. He says for young people especially, their greatest asset might be time.
DORON: When you've just gotten your first job, it's very, very important to start investing and it's very, very important to realize that money invested over time can generate tremendous sums. So you have the compounded annual growth rate...let's say an average of 7% which is what you get in the stock market, generally speaking. Over time that can generate massive amounts of money. So if you start when you're in your 20's, by the time you're 50 you can have money that will pay for your kids' college, that will buy you a house on the lake, that will allow you to retire, that will allow to change jobs or allow you to do a lot of things and give you a lot of freedom but you have to start early and recognize that time is an asset.
ZAK: Even if you're making, like, 30-thousand dollars a year?
DORON: Even if you're making $30,000 and all you can put aside is $1,000, you should definitely do that. And then if you get a job at a place that has a 401k, which is a retirement account taht allows that money to compound, tax-free, then you should do that as well. There are lots of stories of janitors, teachers, fireman, people like that who retire with tremendous, tremendous pension accounts or tremendous savings accounts simply because they over time always invested and never spent that money and allowed it to accumulate and allow it to generate even more and more interest and the amounts become exponential.
ZAK: Doron Levin is the editor-in-chief of Better Investing Magazine. If you have some pragmatic life-advice that we should hear, give me a call on the hotline at 844-935-BEST.