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Best Age To Start Investing And Why

Best Age To Start Investing And Why RVCJ Media


Best Age To Start Investing And Why

Know your right age to start your investment in Best Term Plan & its benefits. Read more about early investment returns in best term plan.

“Is 23 too early to start investing?

It’s never too early to start investing, but some people believe it’s better to wait until you have more money. Some think that the longer you can hold off the investments, the better, though what they don’t realise is the number of opportunities they’re losing in the meantime.

So don’t make that mistake! When you turn 23, it’s time to get started on the best term plan. Here are six reasons why starting at 23 is right for you.

Reason #1: The sooner you start, the better

Starting to invest early will allow you to accumulate wealth over time. The earlier you start, the more time your investments have to grow. Plus, because you’re starting when you’re younger and have a longer investment horizon, your risk tolerance is likely higher than if you had started investing at an older age.

Reason #2: Compound Interest

Investing your money when you’re young allows you to gain more with time. When you want the best term plan, your money starts earning a return and the return can add to it significantly over time.

The longer your money has to grow, the bigger the difference in total dollars you’ll have earned. For example, if you invested $1000 today and it returned 10% per year (which isn’t a bad rate), after 10 years that original $1000 would have turned into $1403.

That’s an extra $403 just from waiting an additional decade! But don’t forget that investing when you’re young also means compound interest, meaning that what’s left over from the previous years gets reinvested too on a yearly basis.

Reason #3: They say time in the market beats timing in the market

Many people believe that the best term plan to invest in stocks is when they have money coming out of their ears, but that’s not always true.

There are several times when it’s better to start investing sooner. Below are three reasons why investing at the age of 23 may be right for you.

Reason #1: You’re Younger Than Most Investors

Most people only start investing after they’ve earned their undergraduate or graduate degree and secured a full-time job.

This means that the average investor will likely be 30 years old by the time he or she starts putting money into a brokerage account.

However, this isn’t necessarily the best strategy considering that most investors don’t get serious about saving until they’re in their late 20s or early 30s.

Reason #4: Avoid fees

Fees are like a hidden tax on your money that can take away some amount from your return. While you’re paying the fees, you don’t know what they’re costing you.

In addition to this uncertainty, they also over time eat into your profits. Also sometimes they’re so high that they outweigh any profit you might have earned in a particular period!

To make sure this doesn’t happen to you, try to avoid funds with higher expense ratios and set up an automatic withdrawal plan so you’re always saving a little bit each month without having to worry about it.

Reason #5: Employer 401k matching

Employer 401k matching is a great way to get the ball rolling on your retirement savings. When you have an employer 401k, it’s often common practice to match some of the amounts that you put in up to a certain percentage.

For example, if you contribute $1,000 and your employer matches 50% of that, then they’ll invest $500 in your account. This allows you to start building up your retirement fund and making progress even when the money feels tight right now.

Reason #6: Save on taxes

When you invest in a retirement account, the money will be taxed as it’s earned. However, when you withdraw from that account post retirement, it will be taxed at a lower rate than your income would be if you withdrew before the stipulated period.

If you’re investing in a Roth IRA and are under the age of 59 1/2, any earnings from the investments that are withdrawn to pay for qualified expenses won’t be taxed.

This means no tax on earnings or investment gains would be put if they’re withdrawn to pay qualified expenses like tuition and medical expenses. Any amount not used to pay qualified expenses will be subject to regular income taxes and may also incur an additional 10% penalty on the withdrawal.

Canara HSBC Life Insurance is one of the leading insurance companies in India with the iSelect Smart360 Term Plan. Here, 0.1% of your balance will be put in each month. However, your iSelect Smart360 Term Plan will no longer be considered to be active when you turn 60 or if the policy reaches the end of its term, whichever is first.


Not everyone starts investing at the same age, and it’s more than alright if you’re still in your 20s or younger and haven’t taken the plunge just yet. Though if you are interested in starting the best term plan, there are many reasons why you should begin at age 23 instead of waiting until later in your life when you have more time or money available to do so. These are just some of the reasons why 23 is the perfect time to start investing today in iSelect Smart360 Term Plan!

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