The image of an investor as a portly, older man does a disservice to everyone who wants to participate in the American stock market but does not fit the stereotypic profile. Like any industry, people who buck trends often carve themselves a path toward greatness. Following conventional wisdom or being a prototypical model isn’t the be all end all. Bill Gates, Steve Jobs, Warren Buffet and other figureheads of industries ranging from technology to finance made their own way onto making their names synonymous with success. So too did Chris Linkas.
Linkas started his path in the world of finance as a young man, and has since accumulated wealth after 25 years which stands as a testament to the hard work that has driven his success toward becoming one of finance’s most well respected figures. Inspiring others to take the initiative to pave their own way is a lesson that Linkas advocates to those who feel they don’t have what it takes to make it in the marketplace. Though experience is irreplaceable, younger investors have advantages that their elder cohorts do not enjoy. As invaluable as experience is, time is even more precious. With the future ahead of them at a time of unrivalled access to information and opportunity, investing is only one of many career paths that favors youth. Seizing the day and embarking upon the challenges that every investor will face in their life is something to do sooner rather than later.
Understanding the Reasons to Start Investing Early
Knowledge of investing makes Chris Linkas the choice of top companies who seek his advice. His road to the top began with his passion for finance as soon as he completed his college education at Bowdoin College in 1991 and led to a position with a UK-based Investment Group. Fascination with markets prompted Linkas to actively pursue a career in finance where he worked as an Analyst/Asset Manager. The heights Linkas rose to have seen others turn to his expertise to build their own principles for prolonged success. The advantages of early investment are indiscriminate and can benefit those from all walks of life. Anyone who recognizes the potential to accumulate wealth can start saving for the future. Whether young investors have aspirations to make a career in finance or to simply build a foundation for financial security, Linkas advocates a core set of principles that are essential to everyone.
Hitting the Books, Hard.
When the first modern stock exchange opened in Antwerp, Belgium in 1531, the world of finance was unrecognizable compared to today. Methods, commodities, and the science of trading itself were still coming to be understood. As the practice grew both practically and academically, early markets like the Antwerp and Amsterdam Stock Exchanges created an ideal forum for investors to practice and learn their trade. In the 400-plus years since, investors can now access the centuries of terminology, theory, and general information which has been preserved.
Services like Investopedia, Portfolio Visualizer, and even free open courses taught by those as distinguished and esteemed as Yale Professor and Nobel Laureate Robert Shiller allow anyone considering investing their money tools to educate themselves. With knowledge is power, even more so when it comes to down to making decisions about your money.
Gaining financial literary is now something that can be done in an aspiring investors free time through diligence and hard work. The practical effects are immediate as students can come to grasp the finances they already have through the real-life application of what they have learned. Optimizing assets which already exist is a seminal achievement for anyone who hopes to grow and expand their wealth.
Doing your homework as a novice investor is integral to bridging the experience gap. Though seasoned investors have learned many of these lessons beforehand, the technology, accessibility, and ability to apply these lessons in this day and age is an unprecedented era for young investors who are driven by their intellectual curiosity and desire to succeed.
Defining an Approach
Most young investors find themselves overwhelmed by finally taking the initiative to put their capital into the market. The spectrum running from stocks and bonds to real estate to as far away as cryptocurrencies is something no one can come to understand within their first few years of investing. Instead, wading into markets with a cautioned approach allows young investors a chance to get an invaluable return on their investments – experience. Cautiously investing in low-risk investments like money market accounts, individual retirement accounts (IRA’s), or simply opening a brokerage account allows young investors to learn as they invest in low risk endeavors as they come to understand what goals they have and which options best facilitate them. The tutelage that comes with working with a broker can provide the gravity that taking action brings while acclimating them into a sense of comfort that allows them to make informed decisions about their financial future.
Changing Spending Habits
A goal of regular investing can create an incentive to save money for a worthwhile purpose. A decision to become an investor can encourage young people to focus on staying within the constraints of a budget and avoiding the temptation to buy something on impulse. Chris Linkas can recommend constant activity by young people who want to enjoy entrepreneurship in the business world. Avoiding the temptation of taking on high credit lines to have the liquidity to make high risk investments builds a temperament that can rival even the most reasoned investors.
Getting an Edge on Peers
As young people enter the marketplace and start to earn money, they face the challenges of decision-making about purchases. Those who understand the adage about the early bird can benefit from the experience of Chris Linkas as an investor. A first investment can start to produce profits immediately and put a young investor a step ahead of others. The earnings in the market can provide the funds for purchases that others may not afford. An investment account can experience a downturn at some point, but the gains that it produces over time help young people face such hardships.
A goal that almost all investors share is the desire to have a satisfying quality of life. Chris Linkas believes that opportunities come to people who train properly and remain alert. Deals take time to mature, he suggests, and they require investors to show a considerable amount of patience. Part of the preparation for successful investing includes doing research beforehand to learn how to recognize the essential elements. While he appreciates the studious aspect of investing, he encourages young people to pursue other activities that interest them. For him, soccer provides a way to clear his head and focus on fun while using the sport to remain fit and healthy. The availability of money in the bank or the stock market contributes to a feeling of well-being, an essential component of living comfortably.
Retirement plans offer access to the market for members of the military through programs such as a Thrift Savings Plan (CompaniesInTheUK). Civilian employees, as well as those in military service, may choose to invest in a 401(k) or a Roth IRA to start a path that leads to an improved quality of life. Young people who take a responsible approach to investing may never face the reckless choices that confront those who wonder how to achieve a stable retirement when it is too late to do anything about it. Chris Linkas’ success in the market as an investor and a leader in the industry shows young people the value of pursuing a purposeful goal toward a healthy and productive life that leads to a satisfying and comfortable retirement.
Identifying Possible Niches
The ornate technicalities of trading cultivate the necessity of hyper-specialization. Investors can focus in on niche markets which allow them to rely upon their underlying expertise, passion, or curiosity about indexes that encompass industries which they have a better understanding of. The foundation of that knowledge can allow an investor to transcend elements of their background into their investment strategy with confidence and the comfort of something familiar. Many investor’s portfolios are saturated with stocks from companies whose industries they have studied or already made careers in. Bringing that element of practical insight into decision making can be a factor that tempers naïve investors from making over-zealous decisions. The sense of identity that any person has can be reflected by their portfolio, allowing young investors to refine the image they have for their future.
Making Recovery Profitable
Anyone who invests in the market knows that it goes up sometimes and goes down at others. In the last year alone, indexes like the Nasdaq Composite, S&P 500, and Dow Jones Industrial had soared to new heights before losing ever biy of gain they had made. No investor is immune to the havoc that a market correction ravages despite the experience that they may have.
Even the deepest recessions are opportunities to capitalize on though. When Chris Linkas began his investing career in 1991, the climate for investors was dreary. Fresh off the heels of a recession caused by a savings and loan crisis, Linkas credits the bear market he cut his teeth in as being the crucible which allowed him to sharpen his investing savvy. With loans being offered at drastically reduced rates to help stimulate economic growth, Linkas found work at a consulting firm which specialized in trading repackaged loans. Managing a portfolio of assets whose trade was aimed at facilitating economic recovery was the catalyst which led Linkas on the path to eventually becoming a vice president at Goldman Sachs, one of the most prestigious financial houses in the world. By making the most of downturns in the market, Linkas was able to prosper at times when others were perishing. The baptism by fire which become the origin of his ascent to success underscores how imperative it is to understand how to reach to volatile periods in markets without panic.
Putting Money to Work
An early investment can earn interest that investors can multiply by a continuous program of buying stock. As the investment produces interest, the gained profits contribute to the accumulated value to generate compound interest. Diversifying a portfolio across different indexes covering a broad range of industries, commodities and assets supplements the efficacy of this strategy. The extended amount of time that young people have to research and explore financial markets allows investments to increase from interest payments that can provide consistent returns year after year. This approach of steady, residual profitability is perfect for building a foundation for retirement while alternative investments can be pursued to grow wealth more explosively.
As a leader in the investment industry, Linkas chooses to work with a variety of tools that let him share his insights with young investors as well as experienced ones. In his job as a credit investor, his goal is one that benefits investors with a purpose of preserving principal with credit-oriented security. He wants to provide strong overall returns with equity upside opportunity. A young person who starts investing a moderate amount of $2,000 each year for 10 years at 10 percent interest can amass a fortune that exceeds the value of someone who makes the same investment for three times as long but started nine years later. The path that Chris Linkas took to success sets a model for young investors who want to emulate his approach to the market. The willingness to accept change lets investors keep pace with changing conditions. His experience as a new college graduate during the economic recession and the Savings and Loan crisis influences his current investment strategy.
Cautious optimism is a perspective that any investor would gladly never lose sight of. Though one perfectly timed investment can make millions, those success stories come few and far in between. Focusing on hitting a home run can be to the detriment of an eager investor. Getting caught up in that approach can ruin a portfolio, fiscal year, or even a career. Maintaining a mild-mannered, objective approach can ultimately be what provides for returns as consistent as this philosophy.
Understanding risk is essential to managing the expectations of any investment. Linkas identifies his experience in real estate markets to illustrate the impact of risk. Investing opportunistically in high risk real estate can require a larger capital investment. Taking on an undesirable asset in order to sell for a higher return requires a significantly higher initial capital investment. For smaller portfolios, these investments make much less sense as investors may not possess the necessary liquidity or credit to spend on the challenge of increasing the value of a property that was bought for at a low cost. Conversely, investing in real estate assets which are intended to be rented as opposed to sold allows investors to build equity while attaining profitability through long-term leaded to tenants with a stable credit history. Though the return on the latter investment lacks requires a different much more caustic approach, the stability of these assets and the frequency of their return is a cornerstone for building a stable portfolio that provides consistent growth.
Without providing any guarantees, the market requires each investor to study stock performance and exercise caution in selecting the ones that meet individual preferences and priorities. In his leadership position, Chris Linkas increased investors’ funds to more than $4 billion in less than two years. Young investors can find an approach that offers high, medium or low risk in the market, and the higher the risk instruments usually provide the highest returns. A distinct advantage of investing at an early age is the amount of time that it affords to recover when a volatile stock fails to produce a profit (https://www.cheynecapital.com/media/1501/creditflux_2014.pdf).
Keeping Sight of the Long Term
Retirement very well may be the last thing on the mind of a young investor. With a long career on the horizon full of possibilities for life-changing investments, it is easy to understand why someone in this position wouldn’t be thinking of retiring. However, many investors take their first step into the realm of finance by starting or relying upon their 401(k) or IRA as a basis to expand their portfolio. Cherishing retirement investments is essential for any trader who seeks to maintain security while managing their wealth amidst making moderate to high risk investment contemporaneously.
Linkas identifies many issues arising to a lack of appreciation for this integral aspect for any investor. Younger investors are especially hard pressed to build this foundation as they often earn less and consequently has less to invest. However, taking proactive initiative that is contrary to making impulsive investments builds healthy habits that serve an investor in the short and long term.
At the end of the day, financial markets are as predictable as the future itself. While the path ahead is uncharted and has to be taken in stride, young investors are in the enviable position of being able to cultivate their prowess and understanding in a manner that enables them to gain experience to weather the storms ahead. Preparedness, proactivity, and a balanced disposition that incorporates secure, low-risk investments to investors to have the foundation to take on greater risk are crucial attributes for any young investor who hopes to manage their wealth into providing them a lifetime of prosperity.