Why Should I Consider Investing? (2024)

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Investing is an effective way to have your money work for you and build wealth. Holding cash and bank savings accounts are considered safe strategies, but investing your money allows it to grow in value over time with the benefit of compounding and long-term growth.

Whether you invest in stocks, bonds, mutual funds, options,futures, precious metals, real estate, or small businesses, investing is important to generate future income, increase value and equity, and build wealth.

Why Investing Is Important at Any Age

An individual's goals depend on a host of factors that may include age, income, and risk profiles.Age can be further subdivided into the following three categories:

• Young and starting in a career
• Middle-aged and family-building
• Retirement age and self-directed

These segmentsoften miss their marks at the appropriate age, with middle-aged folksconsideringinvestments for the first time or the elderlyforced to budget, employingthe discipline they lacked as young adults.

Income provides the natural starting point for investment planningbecause you can’t invest what you don’t have. A young adult's first job issues a wake-up call, forcing decisions about IRAcontributions, savings, or money market accounts, and the sacrificesneeded to balance growing affluence with the desire forgratification. Don't worry too much aboutsetbacks during this period, like getting overwhelmed bystudent loansandcar payments, or forgetting that your parentsno longer paythe monthly credit card bill.

Outlook definesthe playing field on which we operate during our lifetimes and the choices that impact wealth management.Family planning sitsat the top of thislist for manyindividuals, with couples figuring out how many kids they want, where they want to live, and how much money is neededto accomplishthose goals. Career expectations often complicatethese calculations, with the highly-educated enjoyingincreased earningpower while those stuck in low-level jobs areforced to cut back to make ends meet.

It’s never too late to become an investor. You may be well into middle agebefore realizing that life is moving quickly, requiring a plan to deal withold age and retirement. Fear can take control if waiting toolong to set investment goals, but thatshould go away once you set the plan into motion. Remember that all investments start with the first dollar, whatever your age, income, or outlook.That said,those investing for decades have the advantage, with growing wealth allowing them to enjoy the lifestyle that others cannot afford.

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