Investing is an essential part of any financial plan. Unfortunately, many people don’t invest their savings, offering a wide range of excuses for keeping their money out of the market.
This can be crippling to your long-term financial health. To better understand why, let’s take a look at some numbers so you can see exactly what you lose by not investing.
You Will Need Funds in Retirement
Before we get into the details of what you lose by not investing, it is important to understand your needs in the future.
For most people, the biggest financial milestone is the day you walk out of work and don’t return. But from that day forward, you are still responsible to pay your expenses, even as your paychecks have ceased.
Pensions are fading into memory, and most Millennials have never had one. Social Security is great, but hardly covers the basics needs of many retirees, particularly if you want to maintain the same standard of living in retirement.