One reason it’s important for your kids to start investing at a young age is risk. You may have heard that with investing you’re able to take more risks when you’re younger than when you’re older. But what does that really mean? It means more than you think.
“The US dollar is going to collapse, don’t put money into the stock market!” Have you ever heard similar advice? I’m sure you have. And for good reason. The US dollar is economically weak, but politically and realistically strong — a weird combination, but it’s true.
It’s a scary time for the economy right now. Fear is causing panic, which means the stock market has been about as reliable as Social Security benefits. Everyone is worried about their retirement portfolio, as they’ve seen those double-digit percentage drops. But we, as Christians and rational people, don’t have to worry.
As an American living in Italy, near Venice, I feel my perspective is unique enough to write my own article about the COVID-19 issue going on right now. As a finance guy, I feel it’s my duty to remind everyone of some important facts, before we all start freaking out as the New York Stock Exchange plummets.
It’s hard to look at retirement statistics and numbers across generations, because of proportionality. Baby Boomers (born 1946-1964) have saved the most, followed by Generation X (1965-1978), and then Millennials (1979-2000). And of course that makes sense because the older you are, the more time you’ve had to save.
Investing isn’t something we’re taught in school. In fact, finance in general usually isn’t taught in school. I don’t blame the schools, because most teachers don’t feel qualified to teach such a class. There are plenty of other reasons why finances aren’t taught in schools.