Investing Tutorial 1: Why invest in stocks for retirement


So, you know that you should save for your
retirement which leads to the question: What type of investments should you make? Well, the good news is there are
three main investment classes to choose from. First, there is real estate; second, there are
bonds; and third, there are stocks. You may not realize it but, if you own a house, you’re
already invested in the real estate market. And, if you’re on a pension
plan, you are already invested in bonds. Which only leaves stocks. So, the first reason
to invest in stocks for your retirement is diversification.
But, there’s a second reason why you should invest in stocks. Research shows that, over the long run, stocks
have the highest return of all major investment classes. Which makes a lot of
sense because, as a shareholder, you actually own part of the company. And,
the executives of the company want to make sure their profit is as high as possible, which means your return will be as high as possible. So, remember if you invest for your retirement, you should invest in stocks for those two
reasons: first diversification and second higher returns.

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