Why You Should Consider Investing
We all know the warning: “The past performance of any investment is not necessarily a guide to future performance. The value of investments or income from them may go down as well as up. As stocks and shares are valued from second to second, their bid and offer value fluctuates sometimes widely. The value of shares may rise as well as fall due to, and not just including, the volatility of world markets, interest rates, economic conditions/ data and/or changes in the rate of exchange in the currency in which the investments are denominated. You may not necessarily get back the amount you invested.”
Perhaps you are cautious by nature, maybe you have stories turned bad from people you know, or you think you do not have the resources to invest.
You can spend the money you earn, you can put it aside in a savings account, contribute it to an IRA, or you can use it to buy some insurance, but growing your wealth requires a different strategy.
You are never too young or too old to start investing, and there are many ways to become an investor. Educating yourself and getting yourself informed is the first step. There are a number of ways to invest: in real estate, stocks, bonds, mutual funds, futures, shares. And – depending on the Return-on-Investment – there are also different risk levels involved.
What is your investment goal? Why would you invest? To be able to buy a house, to be able to provide for your family, to prepare for retirement? Or are you looking for ways to offset your tax liabilities? Investment goals vary from person to person, depending on age, outlook and income.
When considering investing we urge you to consult with an investment specialist. They will help you get clarity on your investment goals (your personal lifestyle financial plan will be a good start) and advise you regarding the possibilities. A diverse investment portfolio – a mix of investments – however is crucial: don’t bet all your money on one horse. And when you finally do decide to invest, make sure that you have an emergency backup fund. Be prepared for unexpected life events, such as unemployment. Put at least 6 months of your savings aside, to help you overcome unfortunate obstacles.
Read our articles about inheritance tax planning:
