One of the most important things that you can do as an investor is to get an early start on investing. The old saying “the early bird gets the worm,” certainly applies to investing in a big way.
Time is on your side – This is the most straight forward of all the benefits, but yet it may be the most important of them all. Quite frankly if you begin investing at a young age history tells us that you will end up with far more than those who invest later in life. Having time on your side means having a longer time period of being able to save money to invest and a longer time period of being able to find investments that can increase in value quiten nicely.
Compounding returns – Compounding returns are extremely powerful over the long run, and the earlier you get started the greater your chance is to take advantage of this. Put more simply this is the power of the time value of money. Regular investments in an investment portfolio or a retirement account can lead to huge compounding benefits.
Quality of life – The basic quality of life is a huge benefit of being an early investor. By investing early in things such as Roth IRA’s and retirement accounts you should be able to avoid having to make frantic moves near or during retirement. Quality of life during your retirement years will be much better because there will be less stresses and more of a nest egg to work with.