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Basics >> Why You Should Invest
Investing has become increasingly important over the years, as the
future of social security benefits becomes unknown.
People want to insure their futures, and they know that if they
are depending on Social Security benefits, and in some cases retirement
plans, that they may be in for a rude awakening when they no longer
have the ability to earn a steady income. Investing is the answer
to the unknowns of the future.
You may have been saving money in a low interest savings account
over the years. Now, you want to see that money grow at a faster
pace. Perhaps youve inherited money or realized some other type
of windfall, and you need a way to make that money grow. Again,
investing is the answer.
Investing is also a way of attaining the things that you want,
such as a new home, a college education for your children, or
expensive toys. Of course, your financial goals will determine
what type of investing you do.
If you want or need to make a lot of money fast, you would be
more interested in higher risk investing, which will give you
a larger return in a shorter amount of time. If you are saving
for something in the far off future, such as retirement, you would
want to make safer investments that grow over a longer period
of time.
The overall purpose in 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 the social security system to do what
you expect it to do. As we have seen with Enron, you also cannot
necessarily depend on your companys retirement plan either. So,
again, investing is the key to insuring your own financial future,
but you must make smart investments!
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