People need to insure their futures, and so they be aware that if they are according to Social Security benefits, and in some cases retirement plans, they may be set for a rude awakening when they don't have the ability to earn a comfortable income. Investing would be the respond to the unknowns into the future.
Possibly you have been saving cash within a preferential savings account in recent times. Now, you want to note that money grow at a faster pace. You could’ve inherited money or realized other sorts of kind of windfall, and also you desire a method to make that money grow. Again, investing will be 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 company’s retirement plan either. So, again, investing is the key to insuring your own financial future, but you must make smart investments!