Yes, You Will Need To Invest Money If You Want To Grow Your Net Worth

May 9, 2019

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We all have the dream of striking it rich and not having to worry about money ever again.  The reality is for most, working a job and saving money is how you plan for the future.  But saving money will only get you so far in growing your net worth. You'll need to invest a portion of your money is you truly want a secure financial future. Investing in your company's 401K plan or starting your own traditional IRA or a Roth IRA is one of the easiest ways to grow your net worth.  But you should even go further by setting up a separate brokerage account to hold any savings that aren’t currently part of your emergency fund. A brokerage account is an investment account that a broker buys stocks and bonds on your behalf.  Why this may be a wise way to grow your savings is that the returns are going to be higher than your bank or credit union savings account. While your savings account may net you 2%-3% in profit, stocks and bonds can return an average of 10%. But with a bigger return comes a bigger risk that your savings could be wiped out if there’s a downward turn in the stock or bond market.  It's why you should make an appointment with a broker to discuss the options.

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SOURCE: Lifehacker

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