This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Invest as if you’re behind
But if you’re not behind, you can invest extra into these retirement accounts.
However, if you’re under 50, you’re stuck with your specified max amount. The younger you are, the less money you will need to invest over time to build wealth, which is part of the philosophy behind this restriction.
But why allow these restrictions to limit your investing?
If you’re younger, you can build wealth faster and easier.
If You Have Time & Money, Why Not Be More Aggressive?
It’s more common for younger folks not to invest their money aggressively.
Instead, we focus on having fun, living on the edge, living in the moment, and jumping from paycheck to paycheck.
Some of us buy property and put all the money into our homes because we forget other investments outside physical real estate exist.
But if you’re young and have the additional income (with some leftovers to have fun), why not invest the rest when it only helps you build wealth and creates the ability to invest less later on?
If you need the money you’re investing sooner than retirement age, you can withdraw the additional money that exceeds the retirement investment limits since your money will not be tied up in an individual retirement account.
Regular investment accounts are much more flexible, with fewer penalties than your standard retirement accounts.
The Way I See It – Don’t Lose Money
If you don’t have many financial responsibilities, aren’t living above your means, and have extra dough, put that money into an investment account instead of allowing it to sit in a savings account that bares no interest or spending it on pointless things.
Do as the banks do.
Banks are constantly re-investing your money to make themselves more money.
This is one strategy they use to continue building wealth for their billion-dollar institutions.
Key Takeaway
You can never get behind if you act like you’re playing catch up with your investment strategy and invest aggressively by over-investing.
This strategy will ensure you are always ahead. You’ll likely reach your financial goals sooner and experience financial freedom sooner than the average person.
Invest the max limits for those over 50 to help you stay ahead of the investment curve.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.