8 Reasons to Seriously Think about Retirement Investing Investing consistently remains a way people amass great wealth. While most realize the value of investing, not everyone chooses to enter the market and put their money into stocks, mutual funds, or other assets. Lack of familiarity with how investing works might lead them to strictly put
8 Reasons to Seriously Think about Retirement Investing
Investing consistently remains a way people amass great wealth. While most realize the value of investing, not everyone chooses to enter the market and put their money into stocks, mutual funds, or other assets. Lack of familiarity with how investing works might lead them to strictly put money into low-interest ventures.
Doing so may preserve capital, which is better than nothing. The drawback to this approach, however, is the money directed towards savings doesn’t grow very much. In time, particularly during your retirement years, your savings must match the rate of inflation. In order to do achieve this result, funds must be put into solid interest-bearing accounts.
Fear of losing money leads some to become quite skittish about investing. Such concerns should not be mocked. Losing money must be avoided at all costs. Completely avoiding investment strategies might be a bad idea though. Here are eight reasons why investing might be a good idea right now.
1.) Long-term investments generally prove to be fairly safe.
This one shouldn’t be all that startling or shocking, but the numbers don’t lie. Looking at the trend lines of stocks and mutual funds reveals the exact growth of the asset over time. Certain stocks or mutual funds may grow more than others, as should be expected. For those interested in a safe investment over time, it might not be difficult to find a decent, trustworthy, reliable option. A good mutual fund or blue chip stock would be a perfect example of a quality long-term investment asset.
2.) Life expectancy continues to increase.
What does this have to do with investing? You need money for food, clothes, and other living expenses. With the wonders of a long life comes the not always so wonderful requirement to pay living expenses. Persons who enter their 25th year or so of retirement may need a significant nest egg to draw from. Investments that help your money grow contribute to the financial support of someone enjoying a long life and an equally long retirement.
3.) Certain investment could pay huge returns
Predicting how well a stock will do is impossible. If there was a way to pick what particular stocks are going to tremendously well in the market, the vast majority of financial professionals would all be billionaires. That said, some stocks did deliver massive returns after their Initial Public Offers (IPOs) and made early investors wealthy. Other stocks achieved surprising and massive growth over time. Looking at the history of various stocks, many companies priced at $1 or so per share in 1985 are now worth over $90 per share. Think of those huge returns.
4.) The market has its ups and downs but more ups exist.
Dramatic ups and downs in the market leave many worried. True, the market can do go at times. Yes, the market has crashed in the past. The market does go up as well and may do so after a decline. Again, look at the history and trends of the market for some comfort. History shows the U.S. and global economy stay relatively stable. The economy and the market can be described as generally healthy.
5.) Fears exist over entitlement cuts.
Entitlement cuts — particularly reductions in social security and Medicare — do receive some mention on capital hill. The cuts never actually go through because public sentiment and voters don’t back the reductions. That may be the case now, but things can change in the future. In the event social security and healthcare payments due get cut, retirees with many investment assets might be able to better weather the reductions.
Those worried about their health and healthcare as they age should look into PACE programs. PACE stands for Program of All-inclusive Care for the Elderly, and many seniors rely on it. Tips on applying for PACE could prove extremely helpful for those potentially reliant on such programs.
6.) Face the truth about needing the money.
Even when earning a pension and a social security check while retired, many people still need to work. Some may be lucky enough to find a job connected to a beloved hobby. Others might not require anything more than an easy part-time job. Regardless, working during early retirement years may become necessary due to expenses. Such a financial situation may become easier to navigate when owning an interest-bearing investment portfolio. You do not want to have to resort to borrowing money while in retirement, though if you own your car, title loans for unemployed is still an option.
7.) The proverbial clock is ticking on retirement’s impending arrival.
One compelling reason exists for saving money in strong investment vehicles. The time for retirement will soon arrive. As the cliche goes, the time may arrive far sooner than you think. Preparing for retirement long in advance allows for building up the necessary savings to deal with those days when full-time work with a solid salary comes to an end.
8.) Information on investing seems to be everywhere.
The more an investor increases his/her knowledge about stocks, the better primed the investor becomes to make good decisions. The massive expansion of websites, social media pages, apps, cable news channels, and more provides a seemingly unending supply of financial news and information. Take advantage of these outlets to expand perspectives on investing and all its benefits.
Ultimately, the moral here is saved money working well for you can lead to a comfortable, financially secure retirement. Who wouldn’t want that?