Why investing is so important….

One of the things we sometimes hear from individuals is "oh I don't want to invest my money in the stock market, it's too risky!" or "I don't play the markets!" The unfortunate thing about sentiment like this is that it only perpetuates the wealth gap because wealthier people know that the only way to true financial freedom is equity. You have to own assets if you ever want to cut the cord between you and hand that feeds you (likely your employer). Equity could mean ownership stake in a small business, a rental portfolio, or stocks in the stock market (like owning shares of Apple or a mutual fund). Investing in the stock market is something you likely already do if you take part in your company's 401(k) plan, but if you don't have that luxury, or just have surplus cash under the proverbial mattress that you've been too apprehensive to invest, consider this. That money under the mattress may feel safe, but in 20 years it will probably only buy half of the goods and services it used to because of inflation! The S&P 500 over the last 30 years has finished the year with a negative return 7 times out of 30. Meaning 23 times it has made positive returns. The S&P 500 has averaged returns of over 10% per year for the last 30 years, too. Yes, year to year anything can happen (and you should always consult your financial professional with questions), but with good due diligence and a long time horizon, investing your money in equity assets is the best way to not work forever. #investingtips #stockmarket #financetips #wealthtipwednesday

-Your Friends at Red Oak Financial Group