The purpose of investing

* National Financial Planning Week *

Due to the economic crisis many are discouraged with investing for their future.  Wouldn’t you want to know that you could retire comfortably or even accomplish a short-term financial goal? Don’t you want to live independent of your children.  You must take control of your finances today, not tomorrow. In fact, this is the time to invest for several reasons.

  1. The government won’t guarantee social security for all in the future.
  2. Due to dollar cost averaging, you’re able to purchase more mutual funds.
  3. You want to be in control of your financial security.
  4. More companies are opting for payouts to seasoned employees.
  5. The cost of living is drastically increasing.

When you retire, you want to remain retired!!!!

Having clear reasons or purposes for investing is critical to investing successfully.

You don’t always have to think long-term. Investing is as much a tool for shaping your present financial situation as it is for forming your future one. Do you want to buy a new vehicle next year? Want to go on a dream vacation? Wouldn’t a vacation that was paid for with dividends feel nicer?

Investing can be used as a way to enhance your employment income, helping you buy the things you want. Because investing changes along with the investor’s desired goals, this type of investing is not like retirement investing. Investing to achieve financial goals involves a blend of long-term and short-term investments. If you are investing in the hope of buying a house, you will almost certainly be looking at longer-term instruments. If you are investing to buy a new computer in the New Year, you may want short-term investments that pay dividends or some high-yield bonds.

If and when you decide to invest you must educate yourself before doing so.  The two main reasons why many are reluctant to invest are debt and lack of knowledge how savings and investing works.  By no means are we telling you to save for either short-term or long-term goal when you’re unable to make ends meet.  We are simply expressing that there is a way to improve your situation instead of feeling helpless.

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Property of SMG, LLC

Reported by Bahiyah Shabazz, MBA

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