Fantastic Reasons Why You Should Invest Your Money

Investing your money is a great way to plan for your future including retirement, college education for your children of other investment opportunities such as starting a business. Investing allows your money to grow over time using compound interest. Well managed investment plans allow you to live the life you want and deserve. Investing allows your money to grow tax deferred. Investing outperforms inflation and will provide you with steady income when you retire. 

Many people ask for advice from friends, co-workers, family members, strangers and their financial planners about what they should do with their investments or retirement plan. Every investor has different financial goals and objectives and should work with a financial planner to develop a plan to assist with meeting those goals.  

Financial planners have expertise in how to survive the ups and downs of the stock market and can provide the best advice and if and when you should move your money.  Here are some smart tips to help you invest your money.

When to invest

1. As soon as you start working as an adult or earlier.  If your company does not offer a retirement plan open your own IRA. You will need at least 30 years of investing (depending on your salary) to have enough money for retirement.
2. If you plan on getting married.
3. If you plan to have children.

How to prepare for investment

1. If you want to retire by age 65 or sooner.
2. Pay down debt.
3. Create an emergency fund 9-12 months.
4. Get adequate insurance life, health, disability and long-term care insurance.
5. Consult a financial advisor to help you set financial goals, set a retirement date, decide where you want to live and the lifestyle you want to have.
6. Plan for your estate (will, trust, advanced directive).
7. Become a homeowner.

Benefits of investing

1. Reduces stress, anxiety, fear, depression related to your future. 
2. Allows you to develop a solid financial plan so you can focus on other things such as spending time with family and friends and maintaining good health.
3. Helps secure your future and earn income outside of your job.
4. Generates income.
5. Prepares you for retirement.
6. Helps you manage your money.
7. The more you save the more you earn.
8. Creates generational wealth.
9. The future is not promised, you must prepare for the unexpected.

Where should you invest your money?

1. Diversify
2. Mutual funds
3. Individual stocks
4. Bonds
5. ROTH IRA
6. DRIPS (Dividend reinvestment plan)
7. Options
8. Futures

You are your greatest asset. Investing helps generate wealth to allow for a successful retirement, pay for your children’s college education, purchase real estate or start a business.