Should You Consider
INVESTING?
Volker Hartzsch
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Volker Hartzsch
Should You Consider Investing? Investing is an avenue many people are exploring to grow their wealth for the future. There are many options to consider, and during times of low interest rates investors can enjoy good returns. However, unlike savings, investments offer no guarantees, so it’s important to consider the following aspects beforehand.
Financial Position Ideally, it’s best to have accumulated savings and paid off any unsecured interest-bearing debt before considering investing. These savings will ensure that there are sufficient reserves to cover any unexpected costs, while paying off any debt will ensure that there are more resources to channel into investments.
Investment Goals A serious investor should have goals that guide their investment efforts. Primarily, investments are often taken as a way of building up resources for future needs, such as retirement or a child’s education. This goal will guide the types of investment to consider and the risks to take. Additionally, the sooner an individual begins, the more time there is for the investment to grow.
What’s the Focus? Investors make money through growth or income. With the former the income generated is reinvested, so the investment is likely to grow over time. With the latter, any income an investment generates is paid directly to the individual. A growth-focused investment is good for the long-term, while an income-focused approach can work for the short-term.
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