In the recent post regarding the survey of how people invest, the most glaring observation was that over 70 percent of respondents who have yet to experience a recession do not invest at all. Since the survey didn't record the ages of respondents, it is fair to conclude that those who had not yet experienced a recession would be aged in their mid-twenties. Why doesn't this group of people invest? Several reasons were advanced in the comments and in other articles about the phenomenon. Some might feel they don't have enough money to invest while others might be afraid to invest. But whatever the reason, teaching about investing can help address some of these concerns and hopefully get people started on their way -- and for young people, this is especially important because they stand to gain the most. So, what is it they need to learn?
You HAVE to invest
Look around you at anyone over 60 or 70. How are they living? Chances are you will see or know some who is barely scraping by, and others who are living well. What is the difference between them? More likely than not, the difference between those who live well and those who scrape by is that one group invested and the other did not. Which of those two futures do you want to have? There is only one way to get that future: You have to invest.1. The early bird truly catches the worm Some may agree that it is wise to invest ... but not right now. That is just foolish, and here is why: If you look at the chart below, you see that it shows the value of a $100 monthly investment yielding an average of 8 percent a year (the typical long-run yield on index funds):