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What should I do if I'm over 40 and starting to invest?
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Whether you've been putting it off, dribbling it away, pouring it into your kids' college tuition, or you're starting all over again after a crisis of some sort, keep this in mind: It's never too late to start investing.
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The biggest step you can take is to start investing now. Time is an investor's best friend, and with 20 years or longer until retirement, you've got plenty of years to build up a healthy portfolio. But every day you delay means less chance to benefit from the power of compounding. And the longer you have, the more gutsy you can be with your investments: Put most of it in stock mutual funds to get the best returns.
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The easiest way to get started is to have your company take out a chunk of each paycheck and deposit it directly in your retirement plan. If you're worried about how you'll manage with less take-home pay, don't sweat it. Because the contribution is pretax, it'll be less than you think, and you'll adjust your spending habits automatically to make up the difference.
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Of course, it can't hurt to look for places to cut costs. For instance, you can refinance your mortgage or buy a used, rather than new, car. Even bringing your lunch to work and clipping coupons are concrete steps you can take to make investing a reality.
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In the end, you may still have to work past 65 (perhaps part time) or downsize your expectations for retirement a bit, but there's no question you'll be upgrading your comfort and security if you resolve to start investing today.
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