Chris Linkas is a financial expert with an intriguing background. Since November 2012, Chris has been in charge of a 20-person European credit group team specializing in principal investments of opportunistic nature. His vast knowledge about investments gives him good cause to counsel others about the benefits of investing. According to Chris Linkas, numerous college students and young professionals procrastinate too long when it comes to investing money in the stock market.
Nonetheless, people in their 20s should think about investing some of their money regardless of their financial situation or the need to pay back student loans.
Create Wealth by Reinvesting Dividends and Interest Over Time
Primarily focusing on the United Kingdom, Ireland, Switzerland, Germany, France, Italy, Greece, Spain, Benelux countries, and Scandinavia, Chris Linkas has investment experience ranging across a broad spectrum of international groups. According to Chris, young people are not going to retire for many years. Consequently, they do not need to be in perfect financial situations before they invest.
Reinvesting helps younger people grow their investments in a passive way. Even the great scientist Albert Einstein once remarked that compounding and reinvesting are equal to natural wonders of the world. When interest and dividends compound, investors earn money in two ways. First, they see growth in their initial investments. Plus, the extra money they receive by way of interest and dividends also compounds. Investors can retire with substantial amounts of money when they reinvest interest and dividends over decades.
Compounding Offers a Miraculous Key to Financial Success
A $10,000 investment at the age of 20 may conceivably grow to more than $70,000 over the next 40 years. Consequently, the investor would have $70,000 instead of $10,000 when reaching 60 years of age. The previous calculation is based on a 5 percent interest or dividend rate. In reality, investors may reap more than 5 percent, especially if they invest for the long haul.
Many young investors ignore the attraction of dividends. However, history has proven that conservative investments create attractive financial investment portfolios without experiencing levels of extreme volatility. Money generates wealth via time and the magic of reinvesting. Younger people who establish conservative mutual funds offering attractive quarterly dividends should reinvest the dividends into new shares that compound over the years.
Risk Involves Volatility
With his impressive track record in the investment world, Chris Linkas is a professional investor who has knowledge expanding across a broad spectrum of financial sectors. According to Chris, a person’s age determines the acceptable risk-taking level in an investment portfolio. Younger people may want to accept more risk. However, too much risk can lead to a portfolio’s eventual demise. Even though volatility is more tolerable when an investor is young, losing 70 percent of an investment portfolio overnight because of one bad stock pick does not make any sense. A balance of dividend-yielding stocks and bonds may actually be what provides a younger investor with the perfect formula. Over time, that kind of investment portfolio will continue to grow via compounding dividends.
Learn from Mistakes
According to Chris Linkas, young investors should take the time to learn the ins and outs of investing. It is important to bear in mind that even the best investors make mistakes. Every individual is different. Accordingly, each person needs to discover a personal strategy for investing. One investor may tolerate the constant ups and downs of the stock market better than another investor. People need to take stock of their own peculiar quirks and preferences. One benefit of investing in riskier stocks and mutual funds at a young age is that the person has ample time to recuperate any losses.
Technology Offers Young People Financial Advantages
With the help of computers, software programs, cell phones and financial apps, younger investors have the investment tools that were not available to their parents and grandparents. Investors can take advantage of participating in online trading platforms, financial chat rooms, and educational websites that explain basic trading techniques. Many of these investment tools are free.
People Should Take Stock of Their Own Abilities
Logic dictates that a person with a higher paying job has more money to invest. Younger individuals have numerous chances to find jobs paying higher wages or even become self-employed entrepreneurs. Millennials taking stock in themselves should fare better than people who stick with the least attractive options (Angle.co).
Find a Way to Invest in Stocks and Bonds Offering Substantial Dividends
Before his position as the European Head of Credit, Chris Linkas was in charge of a credit and real estate funds company headquartered in New York where he focused on equity real estate investments. Chris Linkas believes that developing an investment strategy involves creating a plan that provides dividends to the investor. Although saving money for retirement offers a young person some incentive to invest, receiving monthly or quarterly dividends helps weather the stock market’s volatile storms.
Young people can take on greater risks because they have more time to wait for failing investments to recover. However, that does not mean investing in overly risky stocks. In Aesop’s famous fable, a slow tortoise won the race over the fast-moving hare by plodding along at its own pace. Reinvesting dividends and interest helps investors reach goals without suffering from anxiety attacks and sleepless nights caused by plunging stock prices.
More about Chris Linkas at https://www.linkedin.com/in/christopher-linkas-001768157/