Over the years, investment has become increasingly important as the future of social security payments becomes unknown.
People want to insure their future, and they know that when they depend on social security benefits and, in some cases, on retirement plans, they will have a rough awakening when they can no longer make a steady income. Investment is a response to the uncertainty of the future.
You may have been saving money in a savings account with low interest rates for years. Now you want to see money grow faster. Maybe you’ve inherited money or realized some other case and you need a way to make that money grow. Again, investing is the answer.
Investing is also a way to achieve the right things, such as a new home, college education for children, or expensive “toys”. Of course, your financial goals will determine what type of investment you make.
If you want or need to make a lot of money fast, you will be more interested in investing with more risk, which will give you a higher return in less time. If you are saving on something in the distant future, such as retirement, you want to make safer investments that grow over a longer period of time.
The overall goal of investing is to create wealth and security over a period of time. It’s important to remember that you won’t always be able to make a profit … eventually you will want to retire.
You also can’t count on the Social Security system to do what you expect. As we saw with Enron, you also may not necessarily depend on your company’s retirement plan. So, again, investing is the key to insuring your own financial future, but you need to make smart investments!
Many people like to rely on 401K plans and other investments to replenish their retirement savings. This is a good practice, because after 2029 there may be no social security. It is not 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 money.
So contact a financial advisor, such as a qualified stock broker, and discuss your financial future with them.