Here are 4 Great Reasons to Invest in 2020
Over half of Americans do not own any stocks, or stock-related investments, according to Bankrate’s Money Pulse survey and a recent Gallup poll. People cite many different reasons for not investing, but with important long-term financial goals such as retirement, the reasons may not be good enough. Here are some reasons as to why you should invest.
- Make your own money!
You might not have millions of dollars to invest, but that doesn’t mean your money can’t share in the same opportunities available to others! We can all agree that you work hard for your money; so why not make sure your money works hard for you?
- Achieve Self-Determination and Independence
When you build wealth, you may be in a better position to pursue the lifestyle you want, especially when planning your retirement. Your life can become one of the possibilities rather than one of the limitations!
- Leave a Legacy to Your Heirs
The wealth you pass can have a profound impact on the next generation, providing educational opportunities, the capital to start a business or financial support to your grandchildren.
- Support Causes Important to You
Wealth can be an important tool for impacting the world in a meaningful way. So, whether your passion is environmental, the arts, or human welfare, you can use your wealth to affect positive changes in your community or around the world.
Framework for Investing
The decision to invest is an acknowledgment that it comes with certain risks. Not all investments will do well and some may lose money. However, without risk, there would be no opportunity to potentially earn higher returns that can help you grow your wealth. To manage investment risk, consider maintaining a broad diversification of your investments that reflects your personal risk tolerance, time horizon, and the nature of your financial goal.
Diversification is an approach to help manage investment risk. It does not eliminate the risk of loss if security prices decline.
Because investing can be complicated, consider working with a financial professional to help guide you on your wealth-building journey.