Golden Ages Can Also Mean Golden Wealth

You probably have heard the old adage -"there are no dumb questions

, only dumb answers." The question "When is the best time to invest?" is no exception when you are invested in the stock market.

Based on dollar cost averaging (discussed in a future article) - buy small amounts regularly. I will not go through the math now, but the principle is quite straightforward - and yes, it works in other currencies too. When you buy regularly, you will buy a larger number of shares when the price is low, and fewer when the price is high, giving you better gains than buying at an average price. And you will have far better gains than buying at the highest price.

With the Power of Compounding (another future article), the answer is: the sooner the better. Just like the answer to "when is the best time to plant a tree?" (the correct answer is 20 years ago), we can settle for now as being next best. Sir John Templeton says compounding is simply the interest, dividends, or gains you earn on the earnings from prior years. A simple example: if you earn 12% per year (realistic) on an investment of 100, your total after ten years is not 220 (100 + (10 x 12% x 100)), it is 310.6. And that same 100, earning 12% after 50 years, will be worth 28,900. Try the calculations! Each year you earn 12% on not just the principal (original amount) but also the earnings accumulated over the prior years.

If your employer offers a 401k option, then you should sign up and start contributing now. This money is taken from your check prior to taxes being taken out and deposited into your 401k account. Most employers match up to a certain percentage. There is no reason not to participate in this type of plan. The other most popular types of preparation to retire are IRAs. You will need to research deposing on your needs. Or you can take the advice of your IRA custodian and decide which one or how many of different types that you should invest in. IRAs also give you the chance to play with real estate properties as a form of residual and large pay out amounts. You can generate enough income to pay bills, debts, and contribute to retirement plan savings if done right.

Anyone can begin saving and planning for the safety and financial security of their future. Retirement should not be a time of worry, yet so many end up in a situation where they struggle and fight to remain in control. Many end up destitute and in homes later with nothing to look forward to but death. This does not have to be the case. Do what you can now to get ready to enjoy the Golden Years. Take away stress and worry from yourself, your spouse, your children, and your grandchildren. Leave a legacy of fun and wisdom. Save now and you will not have to pay later. You will be able to live the lifestyle that you are accustomed to and the one you aspire too. You will be able to maintain, pay the bills, and even travel and do extras if you want.

Sir John Templeton was the person who pioneered the investment fund business in the U.S., and later the concept of global investing, before most Americans knew there were other financial markets. He lived his later years living comfortably in the Bahamas. He is one of the real gentlemen of the investing industry who invested other people's money (and his own) very wisely. The first insight seems obvious - if you do not have money you cannot invest it. If that fits your situation, then you should make sure you do not miss an upcoming article on saving and investing. Even those who buy on margin, or sell short, need some money to do this. The other aspect of his response is more subtle - implying that if you do have money, you should be investing it. Sir John was a long-term investor who was very optimistic about the prospects for the world. I can almost hear him say, "there is no time in history where people were as well off as they are today.

by: Arthur Jones..

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