Why you should consider investing now
Even if retirement seems a long way off, read why you might want to invest right away
07:33 26 November 2013
Many of us are familiar with the unpleasant realities of an unstable economy. While we realise that in time economies will recover, it does not necessarily mean that recovery will happen in a timeframe that is beneficial for our personal financial goals. In order to reach those goals and remain financially stable (in such an economy) it is essential to plan and invest accordingly.
Here are a few reasons to consider investments if you have never done so before:
- The average lifespan becomes longer with the improvements in technology and medicine. This means more years will be spent in retirement than might have been considered typical a few decades ago.
- Fewer assistance programmes and funds that provide a secure source of income. Individuals are expected to determine their future needs and plan finances to meet their goals. Finances are not just about budgets, but also about investments.
- Pensions can improve your finances during retirement but may not be able to allow the same lifestyle or provide for all the necessities. These are a form of investment, but may need to be supplemented with other forms of investments.
- There are many different types of investment options available and financial advisors can help you understand and select the best opportunities for your financial needs and current situation.
Pensions are a great place to begin with an investment strategy. In the UK employers will now be required to automatically enrol employees in a pension plan. The good news is that they are also required to offer multiple choices so employees will have the ability to select the plan they think will benefit them most. More than likely, the funds will be pooled with other employee funds to help minimise the risk and maximise the return. This gives better returns without forcing individuals to shoulder the entire burden of a financial loss.