Stock Market Investing for Teens: A Guide to Building Knowledge, Confidence, and Financial Freedom Through the Art of Investing by Myles West

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WHY YOU SHOUL D
S T ART I N VE S T I N G
YOU N G
n Canada, there is a growing trend of retired persons in their 70s and 80s
returning to work. Some people do it because they enjoy working and
don't want to stop. Others, on the other hand, do it because they have no
choice – they just cannot afford not to. It's a sobering reality, yet many
Canadians are having difficulty saving enough money for retirement.
According to recent research conducted by the accounting company, BDO
Canada Limited, 39 percent of Canadians have no retirement savings,
increasing the temptation to work longer. Worse, 69 percent of Canadians
believe they will not have enough money to live comfortably in retirement.
It's why I began investing at a young age, so I would not have to worry
about working later in life. In this book, I'll explain why you should start
investing early and provide tips on how to get started so you may enjoy
your golden years with peace of mind.
SEVEN REASONS TO START INVESTING
AS SOON AS POSSIBLE
While it’s never too late to start investing or thinking about your financial
future, discover why investing in your twenties is significantly more
profitable than you may believe.
1. To Put Time On Your Side
When it comes to accumulating wealth, time is your most valuable asset.
The sooner you begin investing, the more time your funds have to
compound and grow. Interest is similar to a snowball rolling down a hill in
that it grows more and more over time. Instead of investing large sums of
money over a short period of time, you can save small amounts of money
and attain your goal by allowing your money to grow slowly (and
significantly) over decades. The power of compound interest is responsible
for this (more on this later).
If you're worried that you've waited too long, there's good news: you can
begin investing right now. No matter where you are in life, it is never too
late to begin investing. The first stage is to create a financial plan that
outlines a strategy for achieving your retirement savings goal by a certain
age. You'll need to have a specific, tangible plan in place to make up for lost
time this way.
2. To Combat Inflation
Inflation is defined as a gradual increase in the price of goods and services
over time. Inflation will destroy the value of a country's currency over time
and is influenced by a variety of causes.
Individuals may have to stretch a fixed wage even further in order to afford
increased prices each year due to inflation. It's why some companies offer a
1 to 2 percent “cost of living” compensation raise to their staff every year.
Investors, on the other hand, may find that combating inflation means
continuing to see returns by adding to their retirement fund.
Stocks, in most situations, have a good chance of keeping up with inflation.
You must keep in mind, however, that not all stocks are made equal. During
bouts of inflation, for example, high-paying dividend stocks are frequently
pummeled. Fixed-rate bonds are an example of this. You should concentrate
your efforts on organizations that can successfully pass on their rising costs
to their potential clients. Companies in the consumer staples category

Stock Market Investing for Teens: A Guide to Building Knowledge, Confidence, and Financial Freedom Through the Art of Investing by Myles West