Why is it that so many individuals think that they can't start investing until they have enough money saved? In my work as an independent financial advisor, I have to remind clients that investing is the perfect tool for acquiring adequate savings or wealth. It's kind of a "chicken vs. egg" thing. People may have different reasons for
Really Good Reasons for Investing
- Make Money on Your Money. You may have a moderate income, and less than a million dollars to invest, but your money can always benefit from the same opportunities available to others. You work hard for your money; make sure your money works hard for you. Investing is how you begin to accumulate real wealth.
- Achieve Financial Independence. When you build wealth, you put yourself in a position to freely pursue the lifestyle you want. Your options can be full of possibilities rather than limitations. Financial independence and early retirement are possible, but it doesn't happen without a detailed plan and the discipline needed to follow that plan.
- Leave a Legacy. Your wealth can have a profound impact on the next generation of your family. Think about the ability to provide educational opportunities, the capital to start a business or financial support to your children and grandchildren.
- Become a Philanthropist. You could use your accumulated wealth to affect positive change. Funding the causes that you are passionate about is a way to impact the world in a meaningful way. Whether it's the environment, the arts, or animal rights, your financial support is a tool for lasting change in your community or the world.
A Financial Plan for Investing
Investing entails 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. You don't have to do this on your own. Unless you have expertise in finance, consider getting help from a professional investment advisor. An independent financial advisor will listen to your goals and help you create a financial plan to achieve them. There are various investment options, like stocks, bonds, and money market funds that can be used to build your investment portfolio. Your financial advisor should be able to explain all of this to you.
Material discussed is meant for general illustration and/or informational purposes only, and it is not to be construed as investment, tax, or legal advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon when coordinated with individual professional advice.