The Best Age to Start Buying Stocks

(MoneyHippo.com) – Building a portfolio and buying stocks can be a smart way for people to diversify and grow their wealth. While the idea generally conjures up images of adults in suits on the trading room floor, there’s no age limit on buying stocks. So, what’s the best age to start?

You want to give investments time to grow, so the earlier you start investing, the better the results are likely to be. In fact, teens as young as 18 can and do invest in the stock market, and parents can invest for children younger than 18 on their behalf. The only difference between a young investor and an older one is strategy.

Before buying stocks, investors need to consider their risk tolerance and goals. If the goal is retirement and the person investing is 18, they have the time to recover from the volatility of a riskier portfolio. Yet, those closer to retirement age have less time to recoup unrealized losses from investing, so they might want to hold less risky stocks.

Before buying stocks, investors need to consider their risk tolerance and goals. If the goal is retirement and the person investing is 18, they have the time to recover from the volatility of a riskier portfolio. Yet, those closer to retirement age have less time to recoup unrealized losses from investing, so they might want to hold less risky stocks.

Investors looking at a short-term goal like saving for a down payment on a house or paying for college need to consider their timeframe and how much risk they’re willing to build into their holdings. Bigger risks usually translate to higher rewards, but they can also mean bigger losses.

The best age to start buying stocks is any and every age. Just keep your goals in mind and perhaps consult a professional to help you develop the best strategies to help you reach your desired results.