Because YOLO Doesn’t Apply to Your Finances
“I don’t need to bother with investing, I have a savings account.”
-A Guy Who’ll Probably Go Broke Safely
It’s true that throwing your cash into a savings account is a form of saving, but over the long term, you can increase your earning potential and make your money work harder if you make savvy investment choices.
There are a few factors that impact your investment choices – age, income, and risk tolerance.
The younger you are when you start, the more you’ll likely have when you retire, regardless of interest rate. If you are comfortable with your current life goals and have a surplus on hand each paycheck, investing the excess can protect your retirement down the road.
Let’s be real about risk. If investing were risk-free, everyone would do it. Risk is part of the game. Sometimes you win, and sometimes you lose. When you lose, someone else is winning, and vice versa. (Another great reason to start early is that you have more time to recover from any setbacks in your portfolio.)
A good suggestion is to start small. If you haven’t already, consider opening an account for your retirement. Putting in a minimum of $25 a week won’t get you a yacht on your retirement day, but you could have a nice little nest egg. With a 7% annual return, starting at age 30 and retiring at 65, you could potentially have around $335,000!
Investing in a diversified portfolio can help increase your chances of making more money down the road. It boosts your future income and reduces risk, helping you build the wealth you’ll likely need to achieve the retirement you want.
Consider partnering with a financial advisor to ensure you’re making strategic financial decisions and optimizing your investment portfolio. Ready to amplify your financial growth? Connect with us.
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