No doubt you are all too familiar with risks of investing. No doubt you are also familiar with the fact that you ‘use money to make money’. It therefore goes without saying that taking risks come along with a myriad of benefits. But what about not investing at all? What about, ‘saving under the mattress’? Are there risks associated with such decisions? Of course there are risks.
- You could outlive your money – The Society of Actuaries recently revealed that there is a 50% chance a 65 year old couple can live past the age of 90. This means you can hardly do without investments if you were to lead a comfortable life. You will need investments to sustain you for up to three or eve four decades in retirement.
- You may not leave behind the legacy you desire – You would probably like to leave something behind for your friend and loved ones, or even the unfortunate in the society. How else will you do that without proper investments? You will of course need viable investments to fund your foundation or trust. Your will alone will not do it.
- You might not retire on your terms – It is good, to decide when and how you will retire. You know, the kid of lifestyle you would like to live as an old person. That can only happen if you take a bold step and a risk to invest while you still have a chance to.
- You will always be independent on other people – Nothing is as satisfying as living a comfortable life without depending on anyone. Your job could one day end; your pension may not be enough. Only guaranteed investments will see into it that you do not rely on your children or friends for money.
Talk to your financial adviser to help you understand more on what you need to invest in. Remember – not investing is too much of a risk for anyone who wants to live a comfortable life.