Why invest in shares?
Investing in stocks is a great way to build wealth. If you have time on your side, you can weather short-term market downturns and reap the long-term benefits of investing in stocks. With the help of a financial advisor, you can invest in stocks that match your goals and risk tolerance.
Historically, investing in stocks has been a proven way to build wealth.
Stocks have proven to be a way to build wealth over the long term. Over the past 70 years, investing in stocks has outpaced inflation by an average of more than 9% per year. If you have 1.If you had invested € 000 with an annual return of 8% and held it for 30 years, your investment would be about 30.000 € worth – not exactly little!
While historical returns are not necessarily indicative of future performance (as we will discuss later), they do show that investing in stocks can provide meaningful results. For many people looking to retire (or pay off their mortgage) one day, this is ample evidence that stocks should be considered as part of their long-term financial strategy.
If you have time on your side, you can weather short-term market downturns to reap the long-term benefits of stock investing.
If you have time on your side, you can weather short-term market downturns to reap the long-term benefits of stock investing.
Stocks are the best way to build wealth over the long term, says Jack Bogle, founder of Vanguard Group and author of The Little Book of Common Sense Investing. They can withstand short-term market downturns because they tend to rise over time.
If your investment horizon is more than five years, then stocks are probably better suited than any other asset class to provide long-term growth and income and diversify your portfolio.
With the help of a financial advisor, you can invest in stocks that match your goals and risk tolerance.
With the help of a financial advisor, you can invest in stocks that match your goals and risk tolerance. A good financial advisor can help you figure out which stocks to buy, manage your portfolio and plan for the future.
Plus, you'll have someone on your team who knows about investing in stocks – a good thing if you're new to investing or don't know much about it yet!
Investing in stocks offers several potential benefits, from increasing your wealth to gaining peace of mind.
Investing in stocks has several potential benefits, including the fact that it can help you build a fortune over time. Stocks can be an easy way to diversify your portfolio and sleep better at night, allowing you to reach your financial goals sooner.
Equities have long outperformed other asset classes, delivering higher long-term returns than cash deposits or bonds. This means that they are likely to perform better in the future as well.
Another benefit of equity investing is diversification – by owning different types of stocks from different industries, countries, and sectors (both large caps and small caps), investors reduce their risk by spreading their bets across different assets rather than putting all their eggs in one basket. Stock investments are also relatively easy to make. You only need a small amount of money to get started, and there are many online brokers where you can trade stocks from the comfort of your home. All you have to do is open an account, put some money in it and then choose the stocks or funds you want to buy. The biggest risk with stock investments is volatility. As the market rises and falls, so does your portfolio. For this reason, you need to be prepared for the ups and downs of the stock market so you don't panic when the price drops or sell everything when prices are high.
Conclusion
We hope you are convinced that investing in stocks is a great way to build wealth. But if you're still not sure if it's right for you, we recommend talking to a financial advisor first!