Did you know that having an investment portfolio can help you achieve your long-term financial goals?
When it comes to keeping a money reserve, people prefer to hold their monies in cash. But this could be harmful in the long run. With inflation, the value of your money depreciates and this reduces your purchasing power. Some of the reasons why you should consider investing your money include the following:
- Combat Inflation: inflation is an economic phenomenon that cannot be avoided. One of the ways to protect your money from the effects of inflation is to make sure that your money grows at a rate of return that is higher than the inflation rate. Sadly, most savings accounts cannot offer this, hence, it would be worth your while to consider investments whose rate of return can help you fight inflation.
- Long Term Returns: although cash is relatively safer, it does not have the potential for long-term capital gains. With investments, you have the opportunity to increase your returns in the long run. And, if you want to earn more rewards over time, you can consider investments that have some level of capital risk. This does not mean that you should be careless or overly greedy. Keep in mind that no investment return is 100% guaranteed.
- Steady Income Flow: investing your money will expose you to earn a steady return on your investments. This you can decide to re-invest it for higher returns or utilize it for some other financial need, depending on your investment or choice of portfolio.
- Build Wealth: to build sustainable wealth, you need to keep your money active. You work hard enough for your money, but did you know that you also put that money to work for you instead of leaving it idle in a savings account. Staying consistent with your investment will help you take advantage of compounding. This is when your interests earn more interests (your money is working, and trust us when we say that it loves to work).
- Meet Financial Goals: investing can help you meet a long-term financial goal. For example, your child’s education. Investing can also help you plan towards your retirement. The key is to come up with a plan that will better suit your needs and financial circumstances. You can speak with us to help you create an investment plan that is personalised and targeted towards your specific needs.
There are many benefits of investing your money. However you need to be careful while making your investment decisions. You need to position yourself for better exposure and make sure that investment objectives align with your goals and vision.
To learn more about what we do and how we can help you create wealth for the future, kindly reach out to us via email: info@deutschepartners.com
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