Wondering whether it's time to start investing? If you're looking for ways to grow money for growth and income, and for returns that tend to outperform other types of saving in the longer term, then it's definitely time to make an investment!
This Trading Education article will show you eight of our favourite reasons why you should start investing today.
1. Make your money work for you
If you haven't yet heard about the benefits of a passive income, prepare to discover one of the most exciting financial goals ever! This is particularly important for parents who are anticipating a career break for family reasons in future, or indeed for anyone who wants to prepare now for flexibility and choice later on. Simply put, you can either work for your money - putting in the hours in your job for example - or you can start to make your money work for you when you start investing in the stock market.
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2. Beat inflation
Many bank accounts still offer woefully low-interest rates that barely keep up with inflation - currently at 2.2pc in the UK [1]. When you make an investment in the stock market, you have a far better chance of finding returns that grow your money and beat inflation.
3. Growth for the future
When you invest in stocks, shares, bonds or other asset classes, you make an investment in your future. It's like planting a seed today and waiting for a large healthy plant to grow. It sets you up for great habits and means you can look forward to a healthy nest egg when you have a long-term timeframe and a desire to learn as much as you can about the world of investments. The good news? It's not nearly as complicated as you might imagine and everyone can boost profits!
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4. Retirement planning
Many of us are still guilty of having insufficient retirement funds. If you don't want to rely on a state pension, then it's never too late to start investing in stocks, shares, funds, trackers, bonds and other tools that will help you to create a comfortable nest egg over time. At Trading Education, we will give you the tools and the knowledge that you need to do just that. And remember, there are tax benefits too!
5. Meeting your goals
We all have dreams and many of them involve some finance to get off the ground - whether your ambition is to own a boat, to pay off your mortgage early, to travel the world or to set up your own business. Perhaps you want to put enough away to send the kids to university or to help them to buy their own first house. Whatever your motivations, the patience, discipline and long-term nature of stock market investment mean that you can put in place all of the steps required to prepare financially for that ambition to happen. No more pipe dream - and instead - a planned future reality.
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6. Long-term achievement
One of the great lessons of the stock market is the need to have a long-term timeframe when you start investing. This requires patience, discipline and planning; all of which are superb tools to help you achieve your financial goals. They also fly in the face of our modern culture which tends to focus on quick fixes and rapid wins. Once you start to learn about the long-term promise of a steady investment plan in the stock market and invest in your own expertise and skills, you have the ability to secure your own financial future.
7. The risk of a missed opportunity
If you don't make an investment in the stock market, you risk losing out on significant gains. Remember, bank accounts pay very little interest and inflation is high. Statistically, the stock market has outperformed other asset classes in the long-term and still remains the best long-term home for your money. [2] Don't make the mistake of missing the boat and a stock market rise - consider for example that the London FTSE reached an all-time high at the start of this year, and many believe it is poised to reach another. [3] This means that those who are ready to invest are positioning themselves to reap the benefits of forward-planning and careful timing!
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8. Tax reasons!
Did you know that investing in stocks and shares via a pension is tax efficient? Did you know that you can hold a stocks and shares ISA that is also a tax-efficient savings tool? There are plenty of ways to save money whilst you are making it!
Learn everything that you need to become a successful investor! At Trading Education we will open up the entire world of stock market investment to you and give you the tools, know-how and confidence that you need to move ahead and make an investment in your own future. You'll learn how to navigate the stock market, how to understand the terms, how to read the jargon and the figures and the strategies that can help to grow money in the longer term. Even better, all of the course material is presented in a simple, accessible and ready way that you can implement immediately!
Contact us to find out more and take control of your own financial future!
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Sources:
[1] https://www.ons.gov.uk/economy/inflationandpriceindices
[2] https://www.investopedia.com/articles/investing/103013/stocks-remain-best-longterm-bet.asp
[3] http://www.iii.co.uk/articles/501413/how-ftse-100-could-attack-new-high