According to a recent Gallup poll, 42% of Americans do not own any stocks or stock-related investments.1 Individuals may cite different reasons for not investing, but with important long-term financial goals such as retirement in the balance, those reasons may need revisiting.
- Work towards your financial future. You might not have millions of dollars to invest, but that doesn’t mean your money can’t share in the same opportunities available to others. You work hard for your money; make sure your money works hard for you.
- Pursue the independence you desire. When you build wealth, you may be in a better position to pursue the lifestyle you want. Your life can become one of possibilities rather than one of limitations.
- Leave a legacy to your heirs. The wealth you pass to the next generation can have a profound impact on your heirs, providing educational opportunities, the capital to start a business, or financial support to your grandchildren.
- Support causes that are important to you. Wealth can be an important tool for impacting the world in a meaningful way. Whatever your passion is, whether it be the environment, the arts, human welfare, or something else, you can use your wealth to affect positive changes in your community and beyond.
A Framework for Investing
The decision to invest needs an acknowledgment that it comes with certain risks. Not all investments will do well, and some may falter. However, without risk, there would not be an opportunity to potentially earn the returns that are needed to help grow your wealth.
To manage investment risk, consider maintaining a diversified portfolio of your investments. This portfolio should reflect your personal risk tolerance, time horizon, and the nature of your financial goals. Diversification is an approach to help manage investment risk. It does not eliminate the risk of loss.
This type of investing can be complex. Consider working with a financial professional to help guide you on your wealth building journey. We can often come up with an advantageous plan that addresses your financial goals.
- Gallup.com, 2022: https://news.gallup.com/poll/266807/percentage-americans-owns-stock.aspx
Information in this material is for general information only and not intended as investment, tax or legal advice. Please consult the appropriate professionals for specific information regarding your individual situation prior to making any financial decision.
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