The global economy landscape undergoes consistent ups and down yet the stock market proves to be a great platform to invest and save for the future. Besides, the stock accessibility via an online brokerage platform has increased individual DIY investors.
Novice investors need to gain knowledge on how to read the stock ticker NYSE: SENS before they take the plunge. It does not matter if you desire to lean on the financial advisor or opt for DIY investing, below are some good reasons for stock investing.
Reasons to invest in the stock market
Current earning on your saving is low
Your savings account right now has $10,000 and at the end of the year, you earn $5 as interest. It can hardly help you achieve your future goals like buying a house or for retirement or kids’ college education. It is better to invest some of these funds in the stock market.
Aim for long term
The stock market is risky but you can watch your funds grow significantly. There are times when the market gets bearish but soon the stock regains its bullish state. It is not a scheme to get rich quickly but long-term goal helps your money grow. Be patient!
Solid investments do pay off?
There is no need to be a committed day trader for success in the stock market. No one has that much time. Study the stocks you are interested in and watch its overall growth for some time. It will help you make optimistic decisions – Buy Low, Sell High. If you are still not comfortable then avoid picking a single stock and stick to index funds.
Gain tax-free legal eligibility
If you open IRA or Roth IRA, you get a tax deduction and eventually cash out the funds tax accountant toronto. Start early is magic! For example, if the annual limit in investing is $5.500 in IRA every year at a young age then you can enjoy million in your accounts by the time you turn 65.
You work in a company without a 401[K] plan
Free parking space and snacks at your current company are great but a similar 401[K] plan is unbeatable. The company pays well, so you can invest in your personal retirement plan including an IRA and some stocks.