Investing has become increasingly important over the years, as the future of social security benefits becomes unknown.
People require to insure their futures, and they know that in the event that they are depending on Social Security benefits, and in some cases retirement designs, that they may be in for a shroud awakening when they no longer have the ability to earn a steady income. Investing is the answer to the unknowns of the future.
You may have been saving funds in a low interest savings account over the years. Now, you require to see that funds grow at a faster pace. Perhaps you have inherited funds or realized some other type of windfall, and you require a way to make that funds grow. Again, investing is the answer.
Investing is a way of attaining the things that you require, such as a new home, a college schooling for your children, or expensive toys for your kids. Your financial goals will decide what type of investing you do.
In the event where you require to make lots of funds rapid, you would be more interested in higher risk investing, which will give you a bigger return in a shorter amount of time. But in the case where you are saving for something in the far off future, such as retirement, you would require to make safer investments that grow over an extended timeframe.
The general purpose in investing is to generate wealth and security, over a timeframe. It is important to keep in mind that you won't always be able to earn an income you will finally require to retire.
You also cannot count on the social security method to do what you expect it to do. As we have seen with Enron, you also cannot necessarily depend on your company's retirement plan either. So, again, investing is the key to insuring your own financial future, but you must make smart investments!