When people first try to manage their personal finances, their first question is usually “Should I invest in stocks?”. Everyone has heard horror stories about someone losing their life savings in the stock market, so it can feel risky and scary. But for the most part, this is just noise. There is only one correct answer to the question of whether you should invest in stocks.
And this answer is YES.
You should definitely invest in stocks.
Five reasons why you should now invest in stocks:
- It is easy
- If you do it right, you will earn tons of money
- You can do everything online
- It is the best way to save for retirement
- You can get huge tax benefits
Let’s dive in.
Reason # 1: It’s easy
I thought investing was scary and scary. It really turned out to be a lot easier than I thought. You don’t need huge sums of cash or insider information on which stocks you can choose.
You don’t have to schedule a market, pick the right stocks, and get a hot IPO.
All you have to do is create an automated system and stick to your plan in the long run. You have an amazing retirement and set up a passive income stream along the way.
The best way to start investing is to set up automatic monthly payments in your investment accounts. Do this for 2-3 decades and you will wake up with plenty of money in your account.
For each account, you can set up an automatic monthly transfer. I want to set these for 1-2 days after payment. That way, it never feels like I have money in the first place. To learn more about how easy it is to start investing, check out this post on how to invest money.
READ ALSO: How to download Facebook Videos
Reason # 2: If you do it right, you will earn tons of money
Inventories have produced an average annual return of about 10 percent. At that time, your money will double every 7.2 years.
Let’s say you start with $ 10,000. After a 40-year career, it will be at least $ 320,000 double 5 times. That’s because of one $ 10,000 investment.
I’m going to level you. You cannot get rich just by your salary. Savings and bonds also don’t do that, the return isn’t high enough to affect your life.
Stocks are the key.
Regardless of your income, you will get rich from stocks as long as you start investing early, keep investing, and never sell.
The timing of the market can be DESTRUCTIVE. Skip the news and rank every month like a clockwork. This is how you earn the most money. If you want to learn more about how investing in stocks can be a huge fundraiser, check out the post on how to make money in stocks.
Reason # 3: You can do everything online
We are in the golden age of online investment. Gone are the days when you had to call and set up accounts over the phone, or worse, go there in person. Web investing makes it easy to get started, and you have a lot of options. Even better, the best services often have the lowest fees, which makes it easy AND cheap. To learn more about getting started, check out my online placement message.
Reason # 4: It’s the best way to save for retirement
The average American has to save 1.5 million in order to retire. If you tried to save it using a regular savings account (interest rate about 1.25%), you’ll have to save nearly $ 50,000 a year over a 30-year career. For most people, it is impossible. But with the power of investing, you can invest only 10% of your salary and be ready to retire in 30 years.
Wondering how long it will take to retire if you start investing now? You can play with numbers with this investment growth calculator.
Reason # 5: Tax benefits
The fee you pay may not even be taxed depending on the account you are investing in.
You should invest as much as possible in tax-deductible accounts such as a 401k or Roth IRA.
Your 401k will not be taxed until you pull it down for many years, and your IRA income will not be taxed at all.
You also don’t have to worry about details, including choosing tax-efficient funds and using methods like collecting tax losses. When you invest in tax retirement accounts, you ignore most tax worries.
Start building wealth today
All in all, you have every reason to start investing in the stock market today. You can get your account up and running in just a few hours, and you can be sure to build wealth for a lifetime. If you get the basics of investing clear, you’ve just removed the huge hurdle of making more money. Remember that there are no limits to your earnings.
If you’re looking for other ways to make more money, run through my earning potential below. I’ll give you a custom report based on your unique strengths, and you can figure out how to start earning – even in an hour.
