Start early and take advantage of compound interest.

There is always a “good” reason not to invest, but in reality there is a even better reason to start investing immediately. In fact, starting sooner rather than later is one of the best investment decisions you can make. The reason? So you can capitalize on the interest of compounder. The problem is that compound interest goes against the doubters. Most of us studied in school compound interest, so we know how it works. But it is not until you start looking at practical examples that you realize how powerful it can be.

Use the market moves in your favor.

Dollar cost averaging – a way to weather market fluctuations and low is a technique called dollar cost averaging, typically used in managed funds. With dollar cost averaging, you do not have to focus on where stock prices or interest rates are in charge. You simply invest a fixed amount of money on a regular basis. a dollar cost averaging is an investment technique that can help turn the odds in your favor. The idea is that you buy fewer units than the market is bullish and more units when it is down – automatically. (more…)