Text reproduced with the permission of Ariel Joudai, CPA.
Forty-eight percent of Americans do not own any stocks, or stock-related investments, such as mutual funds, according to a Gallup poll.¹
Individuals may cite different reasons for not investing, but with important long-term financial goals, such as retirement, in the balance, the reasons may not be good enough.
Why Invest?
- To Make Money on Your Money
- To Achieve Self-Determination and Independence
- To Leave a Legacy to Your Heirs
- To Support Causes Important to You
A Framework for Investing
The decision to invest is an acknowledgement that it comes with certain risks. Not all investments will do well and some may lose money. However, without risk, there would be no opportunity to potentially earn the higher returns that can help you grow your wealth.
To manage investment risk, consider maintaining a broad diversification of your investments that reflects your personal risk tolerance, time horizon, and the nature of your financial goal.²
Because investing can be complicated, consider working with an financial professional to help guide you on your wealth-building journey.
- Gallup.com, May 24,2017
- Diversification is an approach to help manage investment risk. It does not eliminate the risk of loss if security prices decline.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2022 FMG Suite.
Get more tax advice from Ariel Joudai here.