Is 62 too old to start investing

Hi Guys
I have very recently stumbled across this site and was wondering is 62 too old to start investing?
I have bought a small amount of shares in 10 or so different companies and i have to admit i like the idea of watching my investment grow.
Your thoughts and advice will be very much appreciated.

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Hi and welcome to the forum!

Although the general advice is to start investing as young as possible, there’s no age limit so good luck and all the best with your investing!

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Welcome!

I personally wouldn’t say so - your goals and risk appetite may vary based on the age you begin investing but doesn’t make it a non starter.

It’s worth considering the above to make sure you’re comfortable with your plan and the stocks or ETFs you invest in.

If for example you have a large amount of cash to be used to support you through retirement then it would be unwise to keep it in cash due to inflation eroding your spending power. Investing this money within your risk tolerances would be beneficial to try & at least keep up with inflation longer term.

It’s a difficult one to answer, are you currently still working, what is your pension provision currently looking like? What other savings do you have.

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This is a question best posed to an investment advisor who has a holistic view of your finances, health and future plans. Critical factors are your timeline (if any) to retirement, savings, standard (and cost) of living, and plans for primary care.

Given the volatility of investment markets, and the truth that your capital is at risk, this isn’t a question for this forum because the real risk to your qualify of life is substantial.

My recommendation for now, if you want to learn how this all works, is to allocate a share of your monthly entertainment budget (or whatever you might pay for a nice meal) towards investing and see how things go.

Generally, the ‘safe’ guidance is to focus on yield rather than growth.

In any case: good luck!

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Thanks guys
I retired about 6 months ago due to brexit causing my biggest customer ( Honda) to move back to Japan.
However i do have pensions, savings and residual income so day to day i am ok.
Like one of the repliers suggested i am looking to aleviate the effects of cash erosion due to inflation.
I have always fancied investing in the stock market, but when i was younger the route to entry seemed a lot more difficult, and i was never happy with the thoughts of paying someone who in reality wouldn’t know much more about business and markets than myself to invest my money.
Currently i am researching ETFs.
Thank you for your replies everyone its very much appreciated and good luck with your own individual strategies.

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There is also the question of why you wish to invest. As you suggest that you are day to day ok, you could see it more as a hobby (I personally find tinkering with my investments quite fun) and, as someone else said, keeping money in cash is effectively allowing it to be eaten away by inflation. If you are not very sure about how growth stocks work (like me, a relative beginner), dividend stocks and better Investment Trusts and ETFs paying up to around 8% dividends might be a great place to start.

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If you have got money you can afford to lose then I would say go for it but do your research :wink:

You’ve obviously missed the window for getting the amazing effects of compounding interest, but I’d still dabble with money I wouldn’t know what to do with, but mainly stick to trusts, etf’s and blue chips and not to try for some more speculative things. I see some of the trusts more like an annuity where you don’t lose your seed money. IE right now you could buy CTY for ~£4.25 a share, but for that investment you’ll receive £0.20 a year for the rest of your life. Obviously the dividend can go up and down, but CTY has a pretty good record so hopefully it would go up. SO 10 years down the line that same 4.25 invested might be getting you £0.30 or 0.40 a share. Some drip feeding into CTY would easily result in a shareholding that would pay for a modest holiday a year, should you choose, or likewise pay for extra xmas presents for the kids etc, without eating into your capital. When you finally kick the bucket, instead of with an annuity it just stopping, your estate can liquidate the shares and split the money amongst your relatives. Obviously an annuity would payout at a better rate, because they are also going to be eating into the capital to do the payouts, but I think you can see my point and how I view it vs a standard annuity.

In this situation I would park cash into fairly safe investments (big blue chips/ETFs) and use the cash flow (dividends). Should see modest capital growth over long run as well.

Also, one maybe able to pass on the portfolio to family, grand kids, etc…it’s all positive at the end in my humble opinion.

Once again, thanks very much for your replies.
I am enthused and focused now.
Never even thought about leaving it to kids etc when i kick the bucket.

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Have you considered gold as a tool against erosion or just putting money into a normal ISA. The stock market is just one of many tools available. (not financial advice)

Thanks for the info. I have some money in ISAs but haven’t considered gold.

Also worth looking at ETF’s as they cover a market so you don’t have to worry as much as individual shares not financial advice

If you do consider gold. Stay away from proof coins, bars and foreign gold. I would only stick with Sovereigns. Be careful with premiums over spot. It can be a tricky market to play.

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Thanks Andy just looking right now.

At the other end of the scale, and maybe needs a new topic… at what age would a parent start getting their child into investing ? Age of the child of course! I assume their is a minumum age before a child can even have a trading account ?

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As early as possible, I’d say. While they can’t open their own investment account until 18, you can open one on their behalf, eg a junior Isa or Sipp, which they later take control of.

If I have a child, I like the idea of opening a junior Sipp. They can’t access the money for at least 55 years, which is a long time for compounding to work its magic.

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So for a child under age of 18 means he cannot have a stocks and shares isa , just a standard junior isa at the bank ?
He’s really eager (11y/o) to save and gain through compounding… especially now he knows he can actually own part of companies he likes such as APL , microsoft, etc… i just hope the company who owns minecraft dont have shares!

Especially when i showed him a compounding calculator. After 10mins typing in various scenarios, hes already dreaming of being a millinnaire at a younger age than his skint dad is now !

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