Question: ing some long-term investments with it. Before you decide to put this step off, consider the cost of waiting. If you invest just $150 a month beginning at age 25, you can put away $1,800 a year. If the investments you choose earn 11 percent per year, you'll have $1,047,294 by the time you're 65. If you wait a mere ten years, however, and begin at age 35, you'll have only $358,236. That's a loss of almost $700,000. Keep in mind that there has never been a twenty-year period over which the stock market has lost money, and shares in most large U.S. companies have averaged gains of 10 percent per year.

Those statistics not only attest to the value of investing, but they also emphasize that you'll want to take the long view when you commit your funds. Ironically, the market's recent downturns signal to many experts the opportunity to earn even larger gains by investing now. You've probably heard the advice, "Buy low, sell high"-during an economic slowdown, it's more relevant than ever. Where should you put your investment? John C. Bogle, founder of the Vanguard Investment Company, is bullish about the stock market and mutual funds invested in it. "The probabilities for stock market investing right now are very compelling," he says, citing share prices that have recently declined around the world, making stocks both cheaper to buy and more likely to yield high returns long term. Bogle counsels choosing a conservative portfolio that's both balanced and diversified. Increase your investment regularly, he says, and ignore day-to-day market fluctuations. Remember, you're in this for the long term. The late Sir John Templeton, whom Money magazine called "arguably the greatest stock picker of the century," founded a fund called Templeton Growth that grew an average of more than 15 percent each year for almost half a century. His maxims for successful investing agree with Bogle's focus on the long term.

"Invest," Templeton advised. "Don't trade or speculate." Keep in mind that buying shares in companies that continue to grow, like Procter & Gamble or McDonald's, is investing in their ability to keep earning money in good times and bad. Frantically buying and selling shares at the first sign of a decline is more like gambling than investing. Of course, before you invest money you plan to park for the next twenty years or so, make sure you've eliminated as much of your current debts as possible, such as credit cards or student loans. Allow yourself enough financial flexibility to start (or continue) contributing to a separate retirement fund, especially if your employer matches your contributions. And protect your liquidity. Set aside cash for emergencies, as well as for near-term purchases like a home or car down payment or graduate school if those are in your five-year plan. Finally, remember Bogle's observation: "If you were to put your money away and not look at it for many years, until you were ready for retirement, when you finally looked at it, you'd probably faint with amazement at how much money is in there."16 To see what he means, check out the interactive growth calculator at http://www.finance.cch.com/sohoApplets/ CompoundSavings.asp.

1. Assume you can invest only half the amount suggested above, or about $75 a month. Use the growth calculator link in the case (or another such tool) to calculate how much you can earn at 11 percent interest by age 65, starting at ages 25 and 35. What does the difference between the two results suggest to you about the value of long-term investing?

2. Why do you think experts advise buying low and selling high? Try reading the financial pages of a major newspaper for a few days and paying particular attention to the behavior of buyers and sellers of securities. Do you think they consistently follow this advice? Why or why not? What other ways can investors profit from buying stock shares?

3. Make a list of your financial liabilities. How much debt do you need to pay down before you can begin setting aside money for long-term investing? Don't forget to allow for other kinds of saving, such as for retirement and emergencies.