Don’t Be Fooled by the Word ‘Guaranteed’
Do you want a guaranteed investment return? If you said yes, keep in mind that the result relies on the person providing the guarantee and the true implications of that guarantee.
Understanding Investment Risks
Many people stay away from the markets. They think it's “too risky” and that there’s no guarantee for their principal or returns. I understand this viewpoint when considering short-term market behavior. However, a diverse stock portfolio is the best way to save for retirement or long-term goals. It lets you participate in the global economy.
The History of Economic Growth
Since the first two humans connected on this earth, the global economy has steadily grown. Neither ancient nor modern world wars have disrupted this trend for long.
Any chart of stocks over an extended period shows a similar pattern:
- A steady rise
- An upward trend over time
The Future of Investment
Of course, there is no guarantee that this will continue. We can imagine many scenarios that could threaten the economy in today’s connected world. The human desire to improve—becoming more efficient, faster, and creating better lives—will continue for a long time.
Investing in Growth
The best way to tap into this growth is through stock market investments.
Your Thoughts?
So, what do you think?
- Do you consider when you will need funds before investing?
- For money you won’t use for 20+ years, why do you check your monthly statements?
- Do market dips worry you? Or are you sure your investment plan will meet your needs in your lifetime?