People want to insure their futures, and they know that if they depend on Social Security benefits and, in some cases, retirement plans, they may be in for a rude awakening when they no longer can earn a steady income.
Investing is the answer to the unknowns of the future. You may have been saving money in a low-interest 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 need a way to grow that money. Again, investing is the answer.
Investing is also a way of attaining what you want, such as a new home, a college education for your children, or expensive ‘toys.’ Of course, your financial goals will determine your investing type.
If you want or need to make a lot of money fast, you would be more interested in higher-risk investing, giving you a more significant return in less time.
If you are saving for something in the far-off future, such as retirement, you should make safer investments that grow over a more extended period.
The overall purpose of investing is to create wealth and security over 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 ensuring your financial future, but you must make smart investments!