How young investors should navigate investing in retirement in light of COVID-19
Yahoo Finance’s Brian Sozzi and Alexis Christoforous speak with Ellevest CEO Sallie Krawcheck about how young people should be thinking about investing in retirement amid the coronavirus outbreak.
Video Transcript
ALEXIS CHRISTOFOROUS: How should young people, young investors during this very tumultuous time be thinking about investing for retirement?
SALLIE KRAWCHECK: Well, you know, you can afford the risk in order to earn the return that historically has been available from investing in the stock market, and so therefore you should do it.
The real key is starting early. And if you can-- even if you don't think you can invest very much, starting in your 20s and 1% out of every paycheck, 2% out of every paycheck, 3% out of every paycheck, whatever you can do because our human brain underestimates the power of compounding and the importance of starting early. $1 in your 20s is worth multiples of $1 invested in your 30s, 40s, 50s.
BRIAN SOZZI: Sally, real quickly, we can't let you go without some thoughts on the markets. This market now seems on autopilot, more specifically tech stocks. Are you surprised just how fast this market rally has started to feed on itself?
SALLIE KRAWCHECK: Yeah. I hope everybody is. I mean, what is more interesting to me than, you know, the rally is the fact that we've got different markets telling us different things. The NASDAQ says that everything's amazing, right? You know, the broader stock market's saying, well, we see the end of the recession. You know, the bond market and oil may be telling us we're going into not a depression but a recession-- depression. And so you've got these different messages which says there's still such great uncertainty and really a lack of-- I don't want to say discipline but sort of a lack of a common understanding across the different markets.
ALEXIS CHRISTOFOROUS: Yeah, makes it-- makes it a confusing time for us all. Thankfully we have [INAUDIBLE].
SALLIE KRAWCHECK: Alexis, in so many ways it's a confusing time-- in so many way.
ALEXIS CHRISTOFOROUS: It is. All right, always good to see you. Ellevest CEO Sallie Krawcheck, be well. We'll talk to you soon.
SALLIE KRAWCHECK: Thank you. Bye-bye.
