Late to Invest? 3 Key Strategies to Help You Get Started

One of the most common pieces of financial advice is to invest your money, but why is investing so important? Simply put, investing allows you to grow your money while taking less risk than gambling or purchasing lottery tickets.

There are many valid reasons to invest in financial advice. Perhaps you are overwhelmed and don’t know where to start, or your need help getting back on track. Or maybe you want to grasp how to manage your money better. Regardless, with expert guidance, you can gain the confidence to make sound financial decisions for yourself and your family.

The real question is, can you even be too late to invest? Read on as we dig deeper into answering this question and things you can do for investing today.

What Should You Do If You Are Late to Invest?

You may have heard that it’s too late to invest, that the market is too high, or that you’ve missed the boat. But don’t worry – it’s never too late to start investing.

There are many benefits to investing today.

The market is constantly changing, and there will always be ups and downs. But over time, the market has consistently gone up – meaning that if you invest now, you can potentially see your investment grow over time too.

Investing now can also help you reach your financial goals sooner. The sooner you start investing, the more time your money has to grow, and the more you can rely on your passive income rather than savings each month to reach your goal.

3 Strategies to Consider When You are Late to Invest

1. Increase Your Savings Rate

When saving money, the general rule of thumb is to keep as much as possible. However, there may be times when you need to increase your savings rate to make a late investment and take advantage of compound interest imminently.

Figure out what your current savings rate is. This will give you a baseline to work from. Determine what your goal savings rate is. This will help you figure out how much you need to save each month.

Once you know your savings goal, you then need to examine your expenses and look at where you can tighten your spending plan to free up cash flow.

The MoneySmart Budget Planner can help you get started.

2. Increase Your Retirement Age and Work Longer

Working longer can make sense for a variety of reasons. If you’ve been previously laid off or had a reduction in hours, working longer can help make up for lost income and keep your retirement on track. Working longer can also give you a chance to boost your retirement savings even further.

If you’re already retired, working part-time or starting a new business can provide additional income and help stretch your savings. Of course, there are downsides to working longer, such as, you may have to put off your retirement and delay any plans you have already made.

You can avoid common financial mistakes by preparing for your future. Creating a budget, building a retirement nest egg and regularly reviewing your progress are all critical steps. You should also protect your finances by investing in wealth protection, investing wisely and ensuring your Estate Plan is in order.

3. Seek Professional Advice

Being behind on your investment and retirement goals can put you in a difficult financial position and may prevent you from receiving the returns you were hoping for. It’s important to thoroughly research any potential investments before putting your money into them.

When planning your investment portfolio, it’s important that you only expose yourself to a level of risk that you are comfortable with. Typically, younger people are more comfortable with taking risks and investing in growth assets as they have more time to make up losses; whereas those approaching retirement are more likely to invest in defensive aka lower risk investments to protect the nest egg they have worked so hard to accumulate.

Our rule of thumb is “the sleep factor” – if market volatility and your portfolio are keeping you awake at night then you should consider lowering your risk exposure.

Seek advice from an experienced financial adviser if you’re unsure about how to proceed. Finally, remember that investments can go up and down in value, so don’t invest more than you’re comfortable with losing.

Invest in Yourself Today with Newcastle Financial Planning Group!

You never want to experience FOMO when it comes to investing for your future. If you feel like you have missed your opportunity, don’t despair!

There are always alternative strategies when it comes to creating and building your wealth – you just need to be aware of your options and seek guidance from an expert who can help you pick the best path for your needs and goals.

At Newcastle Financial Planning Group, our reputable and experienced financial advisers provide a wide range of services, including investment advice, insurance advice, and retirement planning – partner with us today to take control of your future and finances. Call us or book online to secure your first appointment with us today and learn how we can work together to achieve your financial freedom!

REFERENCES: