People invest with the potential of earning considerable returns on investments. However, as an investor, you should be aware of the risk, as you can lose your capital without any returns. Before you invest, you should understand and calculate the risk of that investment to determine if the investment has a higher percentage to yield expected results and choose the best strategies for your investment.
Now, if you are the kind of person who is scared of investing due to the risk involved, we will highlight some reasons you should consider investing today. After this video, you will find it worthy to find an investment for your future.
Any form of investment you are making now is to cash out in the future. There are short, medium and long term investment plans. Now let’s look at several reasons why people invest, and then you may consider investing in the future too.
To secure your future
Investing will help keep you secure your future, especially for your retirement days. It is essential to consider your youthful days as the period where you are actively working and earning more. As you get older, your energy will reduce, and you will be working less and likely earning less if you don’t have an investment to fall back on.
I would advise that you put aside a percentage of your earnings and invest. Investing now in certain opportunities like shares, stocks, index tracker funds and mutual funds will not affect those actively employed or those that may not have the time to monitor any business. You can invest in shares, index tracker funds, and mutual funds where experts manage your investments. Investing a fraction of your earnings in a well-managed fund will help you secure your future as you will live on an investment that would be yielding high returns after so many years of investing.
Security in global economic uncertainty
With uncertainty in the global economy, especially with the recent coronavirus outbreak, its negative effect has swept across various fields. Thousands of people lost their jobs and income in a few months, and the recovery process in some industries has been slow. Investment can be a valuable tool to cushion the effect of these uncertainties, especially with a solid investment plan.
You will notice that some industries are booming despite the coronavirus outbreaks, and investors are steadily cashing out. Investing will protect you and your family against uncertain events that may affect your job or the global economy.
A source of steady income
Rather than putting your money in the bank and getting a meagre interest, why not look for a business that will generate a steady flow of income. You may well have heard of people that quit their regular job after their business investments grew and gave them a stable source of income.
If you can invest in a business that will generate steady income, then you are on your way to financial freedom with good management. You can partner with people with specific skills that are in demand as silent or active partners like chef, barbering, dry cleaning and other services. Many small businesses and people with highly valued skills are looking for investors. Some people have also tried crowdfunding to fund businesses and be part of the business. You can take advantage of the business need for capital to create a steady flow of income, especially from people around you.
Help people actualize their ideas and convert their high valued skills to a successful business as part of an investment strategy.
Take advantage of tax deduction with investment
Most people are not aware of the tax deduction they can enjoy with investments. You can save more with tax deductions when you invest rather than losing more money to tax payments. Take advantage of this to increase your savings through earnings.
Taxes cut deep into our earnings and profit, but you can reduce the taxes and make good use of your total earnings with investments. You can learn more about these tax benefits and how to enjoy them by visiting a fund manager.
Create multiple sources of income
Nowadays, you don’t want to lay all your eggs in one basket, so it is essential to create multiple sources of income. You can access various investment platforms and make money with the internet and online activities. Aside from making money away from your regular jobs, you also have the opportunity to invest in various industries like real estate, cryptocurrency, forex and much more. Take advantage of these opportunities, do your research and add investments to your portfolios.
The good thing about investments nowadays is that you do not need knowledge or technical know-how about the business. You can invest wisely in different industries and make money with a good fund manager. Companies are looking for investors to grow their business, and if you have capital and with your due diligence, you can create multiple sources of income across a wide range of industries.
Now you should research with due diligence before you invest your money. Understand that investments can go both ways, thus take the right approaches to invest wisely. Some people prefer spreading their investments across several portfolios to leverage losses so one loss will not affect your investment. If you do not know about investment, it is wise to contact a financial adviser to help you strategize your portfolio. Also, check out mutual funds and other investment funds to enable you to profit from your investment.
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Recommended books for further reading:
- Intelligent Investor: The Definitive Book on Value Investing – A Book of Practical Counsel
- The Financial Times Guide to Investing:The Definitive Companion to Investment and the Financial Markets: The Definitive Companion to Investment and the Financial Markets
- Think and Grow Rich
- Rich Dad, Poor Dad
- The Barefoot Investor: The Only Money Guide You’ll Ever Need
If you are looking to open an investment account, follow these links below:
- Passive income
- Silver & Gold coins
- Interactive Brokers
(‘68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.)