Investing has become increasingly important over the years as the future of Social Security becomes unknown.
People want to ensure their future, and they know that if they depend on Social Security benefits and in some cases retirement plans, they may wake up raw when they are no longer able to earn a steady income. Investing is the answer to the unknowns of the future.
You may have saved money over the years in a savings account with a low interest rate. Now you want to see that money grow at a faster rate. Maybe you inherited money or realized some other kind of windfall, and you need a way to grow that money. Again, investing is the answer.
Investing is also a way to achieve the things you want, such as a new home, a college education for your kids, or expensive “toys.” Of course, your financial goals determine the type of investment you make.
If you want or need to make a lot of money quickly, you are more interested in investing with a higher risk, which gives you a greater return in a shorter time. If you’re saving for something in the distant future, like your retirement, you’ll want safer investing that grows over time.
The overall goal 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 an income… you will eventually want to retire.
You also cannot count on Social Security to do what you expect it to do. Also, as we’ve seen with Enron, you can’t necessarily depend on your company’s retirement plan. So investing is the key to securing your own financial future, but you have to invest smartly!
Many people like to rely on 401k plans and other investments to supplement their retirement savings. This is good practice because Social Security may no longer exist after the year 2029. It is never too early to start investing in stocks and bonds on your own. However, it is very important to talk to a qualified financial advisor before spending any money on investments.
So contact a financial advisor such as a qualified stockbroker and discuss your financial future with them.
