I know of nothing more despicable and pathetic than a man who devotes all the hours of the waking day to the making of money for money’s sake. – John D. Rockefeller. There’s no doubt money is important. It’s vital for sustaining, advancing and enjoying life. Passive income such as stocks will enable you to do so. These are the 5 main reasons to invest in stocks.
- Steady Income:
The stock market doesn’t care about your race, gender or age. As long as you do your research and invest in quality dividend paying stocks, the percentage you’ll be issued is the same as the other investors (retail) who own those shares. Most companies that pay dividends do so quarterly. Some give the funds to investors monthly, semi-annually and annually. For example, if you put $100,000 in a stock and the dividend is 5%, you’ll get paid $5,000. Ideally, you want to reinvest your dividends until the amount you’re getting is enough to cover your living expenses.
- Easy Money:
It is now easier than ever to own a stock. Platforms like Robinhood even allow you to purchase shares commission free.
- Beat Inflation:
Say you bury $100,000 in your backyard and come back to retrieve it 20-30 years later, it won’t have the same buying power due to the likelihood of risen cost of goods and services.
- Better Returns:
When you put your money in a CD (Certificate of Deposit) at your bank or buy bonds, you’ll earn just enough to beat inflation due to the low interest rates. The national average rate for a 12-month CD is approximately 0.64% as of time of this writing according to SmartAsset. With stocks, you can earn much more.
- Track Record:
In the past 100 years, stocks have regularly shown the frequency to rise despite intervals of crashes and pullbacks.
Those are the 5 main reasons to invest in stocks. If you find this useful, like, share, and leave comments. See similar post: 5 Simple Ways to Make Money While You Sleep.
To learn more, download your copy of Investments: Real Estate vs Stocks available on oparas.com home page or pick up a copy on Amazon.
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