Why You Should Invest
Investing has become increasingly important in the last few years, as the future of social security benefits becomes overlooked.
People intend to insure their futures, and they know that if they are depending on Social Security benefits, and in several cases retirement plans, that they may be in for a abrupt awakening when they no longer have the capability to earn a steady income. Investing is the answer to the unknowns of the future.
You may have been saving money in a low interest savings account through the years. Now, you like to see that money grow at a faster pace. Maybe you’ve inherited money or realized some other type of windfall, and you need a way to make that money grow. Again, investing is the solution.
Investing is also a means of reaching the things that you want, such as a new home, a college education for your children, or expensive ‘toys.’ Of course, your financial goals will determine what type of investing you do.
If you want or need to win a lot of money fast, I would recommend higher risk investing, which will provide you with a higher return in a shorter amount of time. If you want to have money for something in the far off future, for example retirement, you would want to make safer investments that grow over a longer period of time.
The overall purpose of investing is to create wealth and security, over a period of time. It is important to remember that you will not always be able to earn money… you will at some point want to retire.
You also cannot rely on the social security system to do what you expect it to do. As we have seen with Enron, you also cannot absolutely depend on your company’s retirement plan either. So, again, investing is the solution to insuring your own financial future, but you must make profitable investments!
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