On investing, my biggest frustration is that I did not start earlier. The power of compound interest can only be fully harnessed given enough time. I still have more than 2 decades left before I plan to retire. With the time remaining, I think I can still coax enough growth on my portfolio to support a comfortable retirement. But had I known even just half of what I understand now, I would have started investing 10 years ago.
This is what I try hard to explain to my younger colleagues. I tell them that they should take advantage of the many more years ahead of them and start investing today. Stocks, mutual funds, cooperative deposits, it doesn’t matter. The important thing is you start right now.
Right now!
Someone once asked me how much I had made from trading stocks since I started last year. The answer is not much. I did not cite a figure but argued instead that that was the wrong question to ask. My total earnings are hardly impressive today but ask me again 10 or 15 years from now and maybe you’ll see my point. Of course, by then it will be way too late to catch up.
The one thing that compounded interest needs is time – at least 10 years before you begin to appreciate the parabolic growth curve.
Time to compounded interest is like the yellow sun to superman. Without it he is powerless. Ignorance – kryptonite.
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