Investing can mean different things to different people. While investing for some people means putting in money to achieve profit, for others, it can also mean investing time or effort for some future benefit, such as investing in study to improve your self skills or time spent exercising to improve personal health.
In this context, we will define investing as “putting money into financial products, shares, property, or a commercial venture with the expectation of achieving a profit”. Investing means committing capital or funds to different types of assets with the expectation that you will generate a gain or profit in the future from these investments.
You work hard for your money and your money should work hard for you!
Our banks are certainly not breaking a sweat paying us to keep our money in their vaults. Interest rates are low and our purchasing power reduces each year with inflation.
The onus is on you to put your money to work. Investing is how you can take charge of your financial security. It allows you to grow your wealth but also generate an additional income stream, if needed, ahead of retirement.
Various investments such as funds, dividend stocks or real estate will provide either growth or income and in some cases both. While you can receive income from the government through the State Pension Plan, it’s generally not enough to take care of your retirement and you probably don’t want a retirement plan that relies solely on the governments contribution. Not investing, or not doing it correctly, can mean a poorer retirement or a longer working life. When taking investing seriously, the returns generated from your investments can provide financial stability in the future.
The returns that you expect from your investment will depend primarily upon your investment objectives, the amount that you invest and the timeline that you are looking at. There is a popular English proverb “you reap what you sow.” – it is essential that you sow, so that you can reap the benefits in the future. You eventually have to face up to the consequences of your actions (or lack of). Same goes with Investing. Investment is required to meet the important milestones in your life, be it sending your children to university, buying a house or building your own retirement fund. When it comes to investments, it is always better to speak to an investment professional and with most things, the earlier you start investing, the sooner you will achieve your objectives.
For more information, please contact me. I will be happy to help with whatever questions you may have. Rob. E: robert.gourlay@holbornassets.com T: (+6) 01151565649 W: www.rgwealthsolutions.com
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