Forty-eight percent of Americans do not own any stocks, or stock-related investments, such as mutual funds, according to a Gallup poll.¹
Individuals may cite different reasons for not investing, but with important long-term financial goals, such as retirement, in the balance, the reasons may not be good enough.
- To Make Money on Your Money
- To Achieve Self-Determination and Independence
- To Leave a Legacy to Your Heirs
- To Support Causes Important to You
A Framework for Investing
The decision to invest is an acknowledgement that it comes with certain risks. Not all investments will do well and some may lose money. However, without risk, there would be no opportunity to potentially earn the higher returns that can help you grow your wealth.
To manage investment risk, consider maintaining a broad diversification of your investments that reflects your personal risk tolerance, time horizon, and the nature of your financial goal.²
Because investing can be complicated, consider working with an financial professional to help guide you on your wealth-building journey.
- Gallup.com, May 24,2017
- Diversification is an approach to help manage investment risk. It does not eliminate the risk of loss if security prices decline.