Why Take Chances?

Okay, say you don’t want to take on risk or tie up your money in investments. You might be asking yourself: “Do I have to invest?” It’s a fair question, and the stock answer is no.

You don’t have to invest, but knowledge is power. Learn how investments work, when they make sense, and what they could mean for your future before you decide what you’ll do or not do.

To get to your own answer, first assess your readiness. Then, stack the risks of investing up against your future goals, consider your ability to save vs. the impact of inflation, and look at your potential returns.

For most people, pulling the trigger on investing comes down these top 3 reasons:

Inflation

Big goals can be seriously impacted by the big “I” — meaning it will take more money to achieve them years in the future than it takes today. Investing offers the potential to keep up with — and even outpace — the bite of inflation.

Potential returns

Savings alone may not earn enough to get you to your biggest goals (especially when you factor in that darned inflation). Taking on more risk offers the potential for a much higher rate of return. Then, your returns can start earning, too!

Need to set aside less

The more you earn on your money, the less of it you’ll have to set aside to achieve your goals. And having to set aside less money means having more of it to use for other purposes.

Even if money is tight, don’t count investing out. You can always start small and increase your investing later as your situation allows.