Investing in stocks has a large number of great benefits and can help you to plan for retirement. Everyone can benefit by investing a little into stocks because of these reasons.
1. More profitable than Putting it in the Bank
The stock market has an unbelievable ability to give you a great return. Compare that to something like CDs which only increase your account by a small percentage.
The problem with putting your money in the bank is that often times the interest rate a bank will hand out is lower than inflation. This means that even though you may have a little more money in a savings account every year it actually has less buying power because of inflation. Compare that to the stock market which has an unlimited possibility.
2. Great History
The stock market has a great history of going up in the long term. In fact the yearly average annual return on the SPY is 10%, many people would kill for a 10% return. And it doesn’t end there.
Taking the time to learn and manage your account can double or triple your return, or more. A well managed account can easily beat any investment out there.
3. Dividends
Some stocks also pay dividends. This means that in addition to the appreciation you can also get a monthly cash flow. If you hold enough shares the dividends might even be enough to support you.
4. Most of the Rich Invest
The rich invest in stocks, and they do it for 1 simple reason, it works. There is always risk involved with the stock market, but if you do not take any risks it is harder to move forward.