Over half of Americans do not own any stocks, or stock-related investments, such as mutual funds, according to a Bankrate Money Pulse survey.
Everyone has a different reason for not investing, but with important long-term financial goals, such as retirement, in the balance, the reasons may not be good enough.
So why should you invest? Here are four fantastic reasons:
You might not have a hundred million dollars to invest, but that doesn’t mean your money can’t share in the same opportunities available to others. You work hard for your money; make sure your money works hard for you.
When you build wealth, you may be in a better position to pursue the lifestyle you want. Your life can become one of possibilities rather than one of limitations.
The wealth you pass can have a profound impact on the next generation, providing educational opportunities, the capital to start a business, or financial support to your grandchildren.
Wealth can be an important tool for impacting the world in a meaningful way. So, whether your passion is environmental, the arts, or human welfare, you can use your wealth to effect positive changes in your community or around the world.
But remember, you need a framework for investing*
The decision to invest is an acknowledgement that it comes with certain risks. Not all investments will do well and some may lose money. However, without risk, there would be no opportunity to potentially earn the higher returns that can help you grow your wealth.
To manage investment risk, you can maintain a broad diversification of your investments that reflects your personal risk tolerance, time horizon, and the nature of your financial goal.
Investing can be complicated. Consider working with a financial professional to help guide you on your wealth-building journey.
*All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.