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All the financial news outlets and resources say the same thing: Start investing young — and the younger you are, the better. But what happens if you’re closer to 60 than you are to 20?
While starting to invest when you’re younger does give you the advantage of time, it’s never too late to start investing. And since most people (56% according to the National Institute on Retirement Security’s 2021 study) are concerned that they won’t be financially secure in retirement, now might be a good time to start.
Miscalculating how much money you’ll need in retirement could lead to real consequences, such as living on a tighter budget or having to go back to work. And since people are living longer than ever, those miscalculations could be significant.
“Older individuals focus on the very short term,” Clark Kendall, a certified financial planner and founder of Kendall Capital in Rockville, Maryland, said in an email interview. “The problem is, many individuals that retire in their 60s will live another 25 to 30 years and will need to maintain their long-term purchasing power.”
People in retirement may think it’s too risky for them to invest. But if you have money saved up beyond your emergency fund, and you don’t think you’ll need it in the next five years, investing it, regardless of your age, may help you take advantage of the market’s long-term returns and build wealth throughout retirement.