Forty-six percent of Americans do not own any stocks or stock-related investments, such as mutual funds, according to a recent Gallup poll1.
Individuals may cite different reasons for not investing, but with important long-term financial goals, such as retirement, in the balance, the reasons may not be good enough.
Why Consider Investing?
1. Make Money on Your Money
You might not have a hundred million dollars to invest, but that doesn’t mean your money can’t share in the same opportunities available to others. You work hard for your money; make sure your money works hard for you.
2. Achieve Self-Determination and Independence
When you build wealth, you may be in a better position to pursue the lifestyle you want. Your life can become one of possibilities rather than one of limitations.
3. Leave a Legacy to Your Heirs
The wealth you pass to the next generation can have a profound impact on your heirs, providing educational opportunities, the capital to start a business, or financial support to your grandchildren.
4. Support Causes Important to You
Wealth can be an important tool for impacting the world in a meaningful way. So whether your passion is the environment, the arts, or human welfare, you can use your wealth to affect positive changes in your community or around the world.
A Framework for Investing
The decision to invest is an acknowledgement that it comes with certain risks. Not all investments will do well and some may lose money. However, without risk, there would be no opportunity to potentially earn the higher returns that can help you grow your wealth.
To manage investment risk, consider maintaining a broad diversification2 of your investments that reflects your personal risk tolerance, time horizon, and the nature of your financial goal.
Because investing can be complicated, consider working with a financial professional to help guide you on your wealth-building journey.
1 Gallup.com, May 24, 2017
2 Diversification is an approach to help manage investment risk. It does not eliminate the risk of loss if security prices decline.
Securities offered through LPL Financial, Member FINRA/SPIC. Insurance products offered through LPL Financial or its licensed affiliates. The investment products sold through LPL Financial are not insured DuPont Community Credit Union deposits and are not NCUA insured. These products are not obligations of the DuPont Community Credit Union and are not endorsed, recommended or guaranteed by DuPont Community Credit Union or any government agency. The value of the investment may fluctuate, the return on the investment is not guaranteed, and loss of principle is possible. DuPont Community Credit Union and Member Investment Services are not registered broker/dealers and are not affiliated with LPL Financial.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.