Author Topic: Top 10 Reasons to Invest Your Money  (Read 1585 times)


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Top 10 Reasons to Invest Your Money
« on: May 29, 2019, 09:44:41 AM »
Top 10 Reasons to Invest Your Money

1. Grow your money:
Investing your money can allow you to grow it. Most investment vehicles, such as stocks, certificates of deposit, or bonds, offer returns on your money over the long term. This return allows your money to build, creating wealth over time.
2. Save for retirement:
As you are working, you should be saving money for retirement. Put your retirement savings into a portfolio of investments, such as stocks, bonds, mutual funds, real estate, businesses, or precious metals. Then, at retirement age, you can live off funds earned from these investments.

3. Earn higher returns:
In order to grow your money, you need to put it in a place where it can earn a high rate of return. The higher the rate of return, the more money you will earn. Investment vehicles tend to offer the opportunity to earn higher rates of return than savings accounts. Therefore, if you want the chance to earn a higher return on your money, you will need to explore investing your money.
4. Reach financial goals:
Investing can help you reach big financial goals. If your money is earning a higher rate of return than a savings account, you will be earning more money both over the long term and within a faster period.
5. Build on pre-tax dollars:
Some investment vehicles, like employer-sponsored 401(k)s, allow you to invest your pre-tax dollars. This option allows you to save more money than if you could only invest your post-tax dollars.
6. Qualify for employer-matching programs:
Some employers offer to match the money you invest in your 401(k) plan up to a certain amount. Of course, the only way you can qualify and earn these matching funds is if you are actively investing in your 401(k) plan. Thus, many people invest in their 401(k)s to gain the matching employer funds.

7. Start and expand a business:
Investing is an important part of business creation and expansion. Many investors like to support entrepreneurs and contribute to the creation of new jobs and new products. They enjoy the process of creating and establishing new businesses and building them into successful entities that can provide them with a strong return on their investment.
8. Support others:
Many investors like investing in people, whether they are business owners, artists, or manufacturers. These investors feel good helping others achieve their goals.
9. Reduce taxable income:
As an investor, you may be able to reduce your taxable income by investing pre-tax dollars into a retirement fund, like a 401(k). If you generate a loss from an investment, you may be able to apply that loss against any gains from other investments, which lowers the amount of your taxable income.
10. Be part of a new venture:
New ventures need the backing of money, and they look to investors for that backing. Some investors may like the excitement of investing in a new, cutting-edge product or service, or being part of something like a business or film that introduces them to a glamorous world.