What’s the best age you should start investing?

The answer to this question is quite simple and reasonable - right now. The sooner you start investing and the longer you invest, the more valuable your investment becomes. Therefore, it is logical to assume that you should start investing smart money as early as possible. Still, if you think you delayed investing, you are wrong. Even though the best time to begin investing is in child age, it`s never late. To explain and inform us of ways and options for investing, title loans Denver financing specialists have provided this article with all the answers and additional tips to encourage you and direct you to start investing and how to manage your investment funds the best way.

Why start to invest as young as possible?

As the value of investment tends to add up over time, due to the compounding effect of investment, that particularly applies to dividends and reinvest profits. Invested money has a tendency to grow due to certain economic mechanisms. To simply explain this process, we can take an example of the snowball that exponentially grows as it rolls further down the hill. For this reason, we suggest investing earlier as possible to achieve the most out of this compounding process. Of course, to see this effect, you must invest money without withdrawing for some years. This process of money earning money itself is known as compounding interest.

Investing at an early age is more effective than starting, for example, in your 40s because the compounding effect takes time. No matter if your monthly investment is twice as big as the investment of someone 18 years old, by 65 years you will generate approximately four times less money than the one who started at 18.

 How to start investing?

Junior  Individual Savings Account (ISA)

Even though it`s recommended to start investing as young as possible, the law doesn't allow individuals under the age of 18 to invest in investment funds or hold shares. However, if a child wants to start investing parents or guardians can open a junior or pension account. These accounts usually allow minors to manage their investments from their 16 years, however, they can`t withdraw the money until their 18 years. 

JISA investments are tax-free for the growth money and there are a variety of arrangements you can choose by your preferences and the amount of risk you are willing to take.


Pension is another way to invest, and it's also a convenient way for parents to invest in their children under 18 years old. This investing method is a long-term process and excludes money access until a certain pension age, which depends on a few determinants, and can be changed by government propositions. 

In terms of pension investment for children, parents can save a significant amount of money yearly, and have tax relief as a government stimulation program for savings and investing.

3. A Lifetime ISA

Lifetime ISA is a suitable way for investing for young people and those up to 40 years old. This method considers paying yearly until a person turns 50 years old. Money invested in Lifetime ISA can exclusively withdraw as a deposit for buying a first house or after reaching 60 years old. Additionally, to your investment amount, the government will add a certain percentage bonus to your saving.

Final Thoughts

To sum up, you can never be too young or too old to start investing. However, the sooner you invest, your money will start making money due to compound interest. Savings matter at any age. For much Social security. Traditional retirement plans and savings accounts are not enough to cover requirements after retirement. By allocating even a minimal amount of money for investment every month you can secure your future and financial stability in later years.

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