Laura answers a podcast listener's question about how to invest money for higher returns. Find out how much and where to put your money so you create financial security without taking too much risk.
The saying time is money is the absolute truth when it comes to building wealth for your future. Investors who start late usually have to make huge financial sacrifices to accumulate enough money to reach their goals—or they’re forced to work much longer than they want to.
Starting early puts the power of compounding on your side, which turbocharges growth in your account. That means you can invest less but end up with a bigger balance at retirement than if you started late and invested more.
Find the grit and determination to always invest at least 10% to 15% of your gross income for retirement. If you have a workplace plan, consider increasing your contribution by one percent or more every year until you can max it out.
If your best investment option is an IRA, get it set up for monthly recurring electronic contributions from your checking account. Same goes for a brokerage account, so your investments are spread out over the year and happen on autopilot.
See also: 5 Questions to Help You Get Rich
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