Is it ever possible to invest too early?

[Antoneo]

Can it ever be bad to invest early on assuming that you have a decent grasp on stock market and other options? Just wondering because everyone been telling me that it's essential for people to start investing while still in their 20's (right after college) but if this is common sense, I don't see many people doing it (besides having to pay off debt and or grad school/live by yourself). It's like one of those things where everyone knows its not good but they do it anyway.

 

[Geekbabe]

Stocks are a long term investment ,the longer your investing timeline, the higher your possible returns, my grandchildren each got a small portfolio started for them with each of their births

 

[NetworkDad]

Originally posted by: baffled2
Stocks are a long term investment ,the longer your investing timeline, the higher your possible returns, my grandchildren each got a small portfolio started for them with each of their births

Grandchildren? You can be that old

Start early - Go for high risk, you've got nothing to lose at this age. Diversify as you get older. If your employer offers a 401(k) - Take full adavantage of it, especially if they match - Easy money!

 

[m2kewl]

I started investing when I got my first job (direct deposited couple of hundred bucks to investment off every paycheck - didn't even notice it's missing), at the same time paying off school/car loans. If anything I learned from college, it's that time won't be your friend the longer you put it off. It pays to start saving and investing early b/c you don't want to retire when you're in a wheelchair...:Q I will be at the point where I have midtwenty-k'ish in my investment account after four years.

 

[GTaudiophile]

Never too early I'd say. I started investing in Roth IRAs when I was 16. I've also bought some precious metals and will probably get into the stock market directly soon. Got to be diverse, even though the stock market has beaten inflation consistently for 80 years or so on average.

Definitely take advantage of what your employer offers! Just don't invest too much more than what your employer will match.

Edit: It NEVER hurts to just plane-old save either. Start by trying to save just $100 a month from your paycheck. Maybe stick it into a CD. My goal (been successful so far) is to save 15% of what I make in pre-tax income (plus 25% in tax, 10% tithe, leaves 50% for everything else).

 

[Hossenfeffer]

I didn't start investing when I got my first job (could have direct deposited couple of bucks to investment off every paycheck - but I would have noticed it missing) and didn't spend time paying off school/car loans. If anything I learned from college, it's that time won't be your friend the longer you put it off. It pays to start saving and investing early b/c you want to retire when you're in a wheelchair...:Q I will be at the point where I have midfourty-k'ish in debt after four years.

 

[manly]

The general advice is correct that it's never too early.

However, there's an exception to every rule. For example, investing in NASDAQ (or any of its major components) 2 years ago would have been disastrous. The stock market was very stagnant in the 1970s as well. So even though over the long run, equity investments have proven to be quite successful, you can't just ignore some of the years-long bumps along the way. Contrary to somewhat popular belief, the stock market is far from efficient.