Investment vehicles tend to offer the opportunity to earn higher rates of return than savings accounts. Therefore, if you want the chance to earn a higher return on your money, you will need to explore investing your money.
Reach Financial Goals Investing can help you reach big financial goals. If your money is earning a higher rate of return than a savings account, you will be earning more money both over the long term and within a faster period.
This return on your investments can be used toward major financial goals, such as buying a home, buying a car, starting your own business, or putting your children through college. Build on Pre-Tax Dollars Some investment vehicles, like employer-sponsored k s, allow you to invest your pre-tax dollars.
This option allows you to save more money than if you could only invest your post-tax dollars. Qualify for Employer-Matching Programs Some employers offer to match the money you invest in your k plan up to a certain amount. Of course, the only way you can qualify and earn these matching funds is if you are actively investing in your k plan.
Thus, many people invest in their k s to gain the matching employer funds. Start and Expand a Business Investing is an important part of business creation and expansion. Many investors like to support entrepreneurs and contribute to the creation of new jobs and new products. They enjoy the process of creating and establishing new businesses and building them into successful entities that can provide them with a strong return on their investment.
Roadmap to Saving and Investing
Support Others Many investors like investing in people, whether they are business owners, artists, or manufacturers. These investors feel good helping others achieve their goals.
Reduce Taxable Income As an investor, you may be able to reduce your taxable income by investing pre-tax dollars into a retirement fund, like a k.