In our last blog post, we dived into a bit more detail on market investments, which includes stocks, bonds, mutual funds, exchange-traded funds (EFTs), derivatives, and futures. We also explained how market investments play a key role in your well diversified portfolio retirement strategy. Today, Wealth CAP, the best online investment company, will go over just a few of the reasons to invest in market investments. Contact us today to get started!
REASONS TO INVEST IN MARKET INVESTMENTS
- Best long term gains. Market investments should reflect the gains of the market over time. With mutual funds, your annual gains may be minimal (three percent), or they can be large (ten percent or higher). Historically, market investments have outperformed all other types of investments. This is due to the fact of the immense diversification potential of stocks and bonds, as well as the risk involved. When stocks are held for a long period of time, odds are you’ll see the most gains due to this balance of risk versus return.
- Keeps pace with inflation. Inflation is the increase in the price of goods and services over time. For example, no longer is the price of bread five cents like it was in the 1950s. As prices rise, the purchasing power (or what you can buy with your money) decreases. Thus, when you invest in market investments, typically your gains will either keep up with inflation, but will hopefully outpace inflation, leaving you with real gains in purchasing power.
- Reduces risk with a well-planned strategy for buying and selling stocks. Wealth CAP exists for the express purpose of helping people by providing retirement income through our well diversified dynamic bucketing portfolios (DBPs), which are customized retirement and investment solutions to maximize your returns while mitigating risks. When you have a well-planned investment and retirement strategy in place, market investments can play a crucial role in helping you reach your retirement income goals through reducing risk and exposure to volatility in the stock market.
- Ride out stock market drops. Many people panic when they see the value of their stocks go down. They feel as if they’ve lost a lot of money. However, remember that what you are seeing is only a loss on paper; you haven’t actually lost any money until you sell your stocks. In fact, down markets are a time to invest more money in the stock exchange since the value of stocks are low. Wealth CAP, the best online investment company, always recommends to hold your hand rather than fold when it comes to market investments.
- The best diversification means. Because of the diversity of stock options, market investments offer the best possible diversification means, from high-risk international stocks to low risk treasury bills. When you partner with Wealth CAP, we will help you determine your investment risk factor, and from there, we’ll help you choose the best asset diversification model for you. Four of the most common types of asset allocation diversification models include conservative, balanced, growth, and aggressive growth models, all of which have value and a place in peoples’ stages of life.
- Harness the power of long term growth and compound interest. When you invest in market investments with a long term growth strategy in mind, you’ll be sure to see gains, especially when you factor in compound interest. Compound interest is where you earn interest from an investment, the interest is added to the principal (or initial amount), and then interest now grows on this greater amount. With time, interest continues to grow on interest, and your growth rate will skyrocket. Wealth CAP recommends that you reinvest your dividend income and continue to reinvest your interest income in order to maximize your gains.
HOW WEALTH CAP CAN HELP YOU WITH ASSET DIVERSIFICATION
Investing is all about creating wealth. With a solid asset allocation strategy, you will be able to reach your financial goals and your retirement income goals so money will never be a worry when you retire. It’s never too late to begin a retirement savings plan. With the financial experts at Wealth CAP, we can help you with all your retirement planning needs.
Wealth CAP is here to help. Our investment professionals can help you create a well diversified portfolio using our dynamic bucketing portfolios (DBPs), which includes safe investments, alternative investments, market investments, and 401h plans or 401k plans. We help individuals form a comprehensive financial roadmap to success in investing. Our investment consultants will help you create a personal plan that involves social security planning, student debt elimination, debt reduction planning, tax planning, medicare planning, education planning, estate planning, reallocation planning, and budget planning — all to get you on the road to financial freedom.
Wealth CAP offers an individual financial wellness education plan can help you enhance your investment understanding and helps you in your financial roadmap planning process. We help companies form a better 401k or 401h plan to offer their valued employees, as well as to help attract new employees. Our mission for both our individual clients and our company client is to offer you diversification beyond asset classes all through an individualized investment strategy.
We believe our financial philosophy will give you the liquidity you need, as well as the security you crave, to earn the most returns on your investments. Our investment professionals care about your financial well being. Contact Wealth CAP today for a free consultation or a portfolio review!