When Is It Too Late to Start Investing?

The Spotlight

1 minute read

Jul 13, 2021

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You’re in your 30s and think you still have plenty of time to start investing and building your wealth? Recent studies suggest you should probably think again.

Are you above 30 and think you still have somewhat plenty of time to start investing?

Well, some recent studies suggest you should probably think again, and start actively building wealth.

The backstory: the eldest millennials (people born between 1981 and 1996) are turning 40 this year and have experienced major difficulties that have slowed them from building wealth in their early adult lives.

Just as they were entering the workforce, the millennials were hit by 2008 recession. And then, over a decade later, the Covid-19 pandemic hit, leaving millions unemployed.

And, last but not least, millennials are carrying a substantial student loan debt, which has jumped to some $1.7 trillion in 2021.

And where did all this leave them? In almost every aspect, elder millennials in the U.S. are doing worse financially than their parents' generation.

They earn less: in their early 40s, typical Baby Boomers (people born from 1946 to 1964) had about $113,000 in wealth in 1989, while older millennials only had a net worth of $91,000 in 2019.

They are less likely to be homeowners: in 2020, 18% of millennial renters said they planned to rent forever, according to a report from Apartment List. And among those who do plan to buy a home, 63% have no money saved for a down payment.

And what about family inheritance? With the continuous rise of life expectancy, newer generations are getting their family inheritance, if any, increasingly later in life, which makes it harder for them to meet those mid-life investment and wealth goals.

Is it too late to catch up? In short, no.

For those feeling like they might be a bit behind on wealth building, the important thing is to be aware of it… and then start by figuring out where they are financially and what first steps they’re ready to take. For example:

  • Minimizing expenses.
  • Generating more income through investment.
  • Building wealth and diversifying one’s portfolio with reliable assets such as gold.

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