Why Stocks ?...

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Although, the economy's ups and downs, the stock market has always proven to be a great place to invest your dispensable cash and invest for your future plans.

 The reputation of online brokerages indicates the interest for stock approachability in a progressively  DIY society.

But the stock market can be speculative if you don't know what you're doing, so you might need a little help   before getting started. Either you want to take on DIY investing or count on a financial advisor, we'll mention the reasons you should take  into consideration when you’re ready to invest   in stocks.

WHY INVEST

Your redeeming won't do much if you keep it in a low interest account. Without paying attention to the market, saving for high goals becomes difficult .These long-term aims frequently include:

  • Buying an apartment or house
  • Redeeming for retirement
  • Redeeming for your children's college education

WHY STOCKS

You don't have to all of a sudden become a CNBC enthusiast or an expert on concrete companies to get started investing in the stock market. If you have a 401(k) or you've had a 529 plan (an education redeeming plan), you have already taken part in America's proven way for securing the best long-term development out of your hard-earned cash.

Here are some reasons why you'll want to think about stocks:

  • Best Promising for Growth: Yes, the market has had its up and downs, but you can consider to  get more by investing in stocks than you would with corporate bonds, commodities, or treasury notes. From a historic point of view, stocks have supplied almost 10% over the long term as long as U.S. Treasuries have given back just around 5%.
  • Asset Distribution: The key to combatting the volatility of stocks is to control as much as you can by expanding where you put your savings. You may still think investing in some  bond holdings and other less speculative options like a money market account, but you certainly don't want to put all your money in any one place.
  • Advantage of Time: If you're getting to retirement age, you need to pull back on the speculative  investment options. But if you have time on the other side, you can probable withstand the riskier investments and ride the ups and downs that are certain.. Anyway , you should know one big truth .You  can't get big returns without taking risks.

Read on for our 18 reasons to consider getting  into the stock market.

1. IT'S NOT 2006

Yes, we know the market smashed in 2007. And if you'd invested all your saving back in 2006, you would have absolutely been singing the blues a year later. But times have changed and the economy is recovering.

2. IT'S NOT 2009 ANYMORE, EITHER

After the Dow hit a 12-year low in March of 2009, stocks began to revive. As long as the market was by no means "certain " then, great deals could still be found. If you held stocks for few years, you clearly found yourself making some money.

3. RIGHT NOW, YOU'RE MAKING JUST 0 .05% INTEREST ON YOUR SAVINGS

At that rate, if you have $10,000 in your savings account for a year, you'll end up making just $5 in earned interest. That will hardly buy you a Frappuccino at Starbucks. You're better off investing that money to work in the market.

4. IT'S GOOD FOR THE LONG-TERM

Yes, the stock market can be speculative, but if you're not looking for a get-rich-fast scheme and alternatively invest carefully over time, you will see your money grow in leaps and bounds. Even after a bear market, stocks will become compelling again.

5. YOU WANT TO FEEL LIKE AN ADULT

Casually saying at a dinner party that you own stock in Apple sounds exciting, doesn't it? Nevertheless, comprehend that you'll need spend a lot  of cash to buy just one share of such a well-known stock, so you might want to think about  investing in a good company that is a little less famous and more reachable .

6. YOUR FRIEND'S STARTUP IS definitely GOING PUBLIC

If your friend is Mark Zuckerberg, you presumably already have millions by now. The more you get information about stocks and  news about IPOs (initial public offerings), the smarter you'll be when it's time to invest your money.. Just be attentive not to lay down all your investing on friends. Even Facebook's stock didn't perform as well as forecasted when it first went public.

7. GOOD, SOLID INVESTMENTS CAN ABSOLUTELY PAY OFF

You don't have to be a committed day trader to make money in the stock market .If you analyze the stocks you want to invest your money and watch their complete growth over a period of time, you're more probable to make a wise decision when buying them. Buy low, sell high. And if you're still not feeling  self-reliant - or you want to be more moderate - stick to stock index funds to avoid having to select any one stock.

8. YOU WANT MORE MONEY

If it was only as uncomplicated as planting your money in a pot and watering it, we'd all be rich , right? We can invest in stocks. It's the only real promising these days to see compelling growth in your investments.

9.YOU WANT TO make YOUR PARENTS proud

You always hoped you'd make them proud eventually.. And just think of how glad they will be when you tell them know you've opened an online brokerage account and made some great transactions.

11. Promissing TAX SHELTERS WITHOUT BREAKING THE LAW

If you open a stock, bond, or mutual fund IRA, you can  get tax shelters without breaking the law.

You can set up  an IRA and write it off on your income tax (with a Traditional IRA), or set up  a Roth IRA and ultimately take the money out tax-free. So, if you invest $5,500 (the current annual limit) in an IRA each year while you're young, you are likely to have over a million bucks by the time you hit 65.

12. YOU SAW THE WOLF OF WALL STREET

The real "Wolf of Wall Street", Jordan Belfort, was highly smart, but he let his penny stock success go to his head. Nevertheless, you can make money if you do your  work and don't buy a Ferrari and a mansion the second day  you make a million.

13. WARREN BUFFET GOT RICH ON THE STOCK MARKET

He wasn't a highly risk taker, but he made wise selections. 

14. IT'S ALWAYS GOOD TO DIVERSIFY YOUR PORTFOLIO

If you want to sound influential, there's nothing like being able to mention that you have 50% in stocks, 30% in mutual funds, 20% in bonds and 10% in options and futures. It shows you know what you're doing by taking a level-headed plan to your investments by expanding .

15. YOU HAVE COMPANIES YOU CARE ABOUT

Investing in companies that matter to you can be a smart strategy to buy  stocks - as long as those companies have a good track record and a good  business.

16. YOU'RE A SMART RISK-TAKER

Many people want to invest in stocks to make a fortune . And while this is exactly a prospect , don't put all your eggs in one basket. Make sure you have a various portfolio and dispensable cash before trying to invest in the stock market.

17. MAKING EASY MONEY IS FUN

Fantasize sitting at home in your underwear and  gathering dividend checks just because you invested intelligently. Can't picture it? Then you haven't started investing in stocks yet.

18. YOU WANT SECURITY FOR YOUR FUTURE

Planning ahead will   seldom let you down. Invest intelligently, and you will be able to  hang out with a nice nest egg in your golden year.

 

If you find yourself considering if it’s time to get professional help making an investment plan, it may be time to cooperate with a financial advisor. You can decide to work with PARK CIRCLE TRUST in order to find a skillful financial advisor to help with your investment goals.

I'm the Founder and CEO of HUM2HUM. We are your technology partners in all phases of the development process, working with you to design and develop solutions that complement and enhance existing system architecture. https://hum2hum.com/

Ecaterina Bota

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