Why You Should Invest
Investing has become increasingly important over the years, as the future of
social security benefits becomes unknown.
People want to insure their futures, and they know that if they are depending on
Social Security benefits, and in some cases retirement plans, that they may be
in for a rude awakening when they no longer have the ability 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 over the years.
Now, you want to see that money grow at a faster pace. Perhaps 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 answer.
Investing is also a way of attaining 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 make a lot of money fast, you would be more interested in
higher risk investing, which will give you a larger return in a shorter amount
of time. If you are saving for something in the far off future, such as
retirement, you would want to make safer investments that grow over a longer
period of time.
The overall purpose in 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 an
income… you will eventually want to retire.
You also cannot count on the social security system to do what you expect it to
do. As we have seen with Enron, you also cannot necessarily depend on your
company’s retirement plan either. So, again, investing is the key to insuring
your own financial future, but you must make smart investments!
