While investing in stock markets is luring, it is just as risky. All the money that you could gain could just as easily be lost. So, one could very easily be convinced not to invest in stocks. However, they have their charm, their surprise elements and most importantly they don’t constitute every penny you make but only a part of it. So, here’s why you could consider investing in stocks:
Growth happens with time, even in the case of stocks. One might not realize the importance of this growth in financial savings, but stock investments give meaning to it. Money invested for a longer duration will higher the chances for it to grow. This long term growth of money is possible in many ways, one of which is investing in stocks. This stock investment could even be made by signing up for retirement plans like 401(k) which would be sponsored by your employer.
Although there are constant ups and downs in the market, which could stir up quite some tension, potential growth has been seen in the case of the stock markets over the years. Money invested in stock markets has shown to give significant returns comparatively over a good length of time. While planning on a retirement plan, it is hence important to invest a part of it in stocks.
It is quite common for one to worry about the losses one might incur in this field. However, if the stock market can be trusted for its erratic behavior, there are good chances you’ll come out of it. This is why stocks are long term investments. Although it could take time to recover, stocks still seem to be the better option. Another perspective would be that your losses in stocks are not losses until they are sold. Just as one wouldn’t spend their savings for future now, it would be advisable to hold on to stocks even during their losses.
Finally, all your time and money doesn’t go into stocks. You’d rather invest and get the greater amount out of it than go for other less paying options.