For the Warren Buffetts or Benjamin Grahams of the world, investing was a calling. For these men, it was a career that involved a passion that went well beyond simply making money. Though, the money probably helped, especially given how much of it there was for the best investors. However, for most of the rest of us, investing is pretty much about one thing and one thing only: retirement.
Everyone dreams of that day when they can pack it all in and leave behind our dismal, thankless careers for, I don't know, wood working or something. Even if you're more concerned with sending your triplets to college or finally starting that small business, understanding that saving money and prepping a nest egg to fall back on is still important. Financial flexibility later in life isn't something to scoff at.
Unfortunately, getting a nest egg ready is something we should all start doing in our mid- to late-twenties i.e. the period during which we're at our dumbest. It's easy to feel invicible in youth. After all, once all of your dreams come true, there will be little to no need to carefully grow a retirement account. However, much like foregoing health insurance is a real terrible idea, so is completely ignoring retirement until it's too late.
And that means that, much as you don't want to, you need to start saving before you're 30. What's more, you need to go about it the right way, investing and planning out your investments. Slow steady returns and compounding interest isn't really exciting at 25. It is, however, wildly exciting at 55 if it means you're retiring from a job you hate a decade sooner than you had previously anticipated. It's hard to look that far down the road when you're that young, but that doesn't mean it's worthwhile.
The following infographic from Money Tips illustrates the seven biggest mistakes that people tend to make with their retirement plans, from the obvious (not having one) to the more nuanced (diversification).
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer