Majority of young people seem to delay their investment plans until they are financially stable. But the fact is, investing while still young, especially during the age of twenties is more advantageous and beneficial due to the following factors listed below.
Although money seems to be always tight, young adults have the advantage of time due to their age. This means that they can wait for their investments to profit and still have time to reinvest the gains that were earned. The compounding scheme allows investors to produce wealth in a matter of time for this only requires time for reinvestment.
Take on More Risk
Young adults who still have more years to earn can withstand additional investment risks compared to people who are already in their retirement age who opt to invest in ventures that have lower risk possibilities like certificates of deposit and bonds says Chris. Whereas, young people can withstand more volatile investments that produce bigger profits.
Learn by Doing
Due to the prolonged learning trajectory needed to study the markets for investment, young people have the advantage because of their age. They have more time to correct investment mistakes and recover losses.
Young people are naturally tech savvy because they were born at an age where every appropriate technological tool is available to give numerous chances to learn the technology associated with investing in the markets such as using a servicer/platform, which is likewise utilized by Chris Linkas’s Fortress Investment Group.
The human capital is a personal worth or value of an individual in terms of future wages described by Chris. So due to the age of young adults, they have ample opportunity to get a degree, learn skills, get employed and earn a living that would provide some skills which could be used in investments that could yield a high return.
Chris Linkas is currently the Managing Director of Fortress Investment Group London UK & NY. He was also the European Head of Credit Group who manages significant opportunistic investments within the UK-Euro districts. And before that Chris Linkas was Head of Fortress Credit and Real Estate Funds based in New York (http://bitsylink.com/2018/03/14/unique-investment-tips-you-can-learn-from-chris-linkas/).