Investment has become increasingly important over the years as the future of social security benefits is unknown.
People want to insure their future, and they know that if they rely on social security benefits and in some cases retirement plans, they may face a rough awakening when they are no longer able to earn a steady income. The answer to the unknown in the future is investment.
You may have been saving money in a low interest savings account for years. Now, you want to see that money grow faster. Maybe you have inherited money or realize some other kind of sudden fall, and you need a way to grow that money. Again, investment is the answer.
It also invests in a new home, a college education for your children, or a way to get the things you need, such as expensive ‘toys’. Of course, your financial goals determine what kind of investment you will make.
If you want or want to make big money quickly, you will be interested in investing more risk, which will give you a big return in a short period of time. If you are saving for something in the distant future such as retirement, you will want to make a safe investment that will grow over the long term.
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 an income … you will eventually need to retire.
You can’t count on doing what you expect from the social security system. As we’ve seen with Enron, you can’t necessarily rely on your company’s retirement plan. So, again, investing is the key to insuring your own financial future, but you must invest wisely!
Many people prefer to rely on 401K plans and other investments for their retirement savings. This is a good habit as there may not be social security after 2029. Investing in stocks and bonds yourself is never fast. However, it is very important to talk to a qualified financial advisor before you invest money.
So talk to a financial advisor, such as a qualified stockbroker, and discuss your financial future with them.