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Why You’re Never Too Old to Invest in the Stock Market

By on October 7, 2020 0 697 Views

Many people stop buying stocks as they reach their 50s and 60s. But, this is usually not the right financial strategy for most people. Holding at least a few stocks in your investment portfolio, even if they are low-risk, low-reward stocks can help you beat inflation and ensure your retirement fund lasts. Here’s a look at reasons why you should buy stocks, regardless of what your age is. 

You’ll Likely Live Longer than What You Think

Given the medical advancements we’ve made and the increasing life span of people, it’s likely you’ll live a lot longer than you think you will. This means you’ll need your retirement savings to last you at least 30 years from when you retire. The only way to ensure your savings last this long is by investing in stocks. 

Stocks Can Be Safe Investments

Stocks have a reputation for being volatile and risky, but that’s not necessarily always true. Many stocks, especially stocks of large-cap companies, are quite safe and can bring stability to your investment portfolio. 

Markets Always Pick Up

Don’t let news of the market not performing well scare you. The truth is that the stock market always picks up. There are very few times in history when the market has been down for consecutive years. Even still, the stock market will eventually pick up and you’ll be able to make your money back. 

Your Portfolio Doesn’t Have to Comprise only Stocks

We’re not saying stocks have to comprise your entire portfolio. In fact, they don’t even have to make up 25% of your portfolio. But, having a small percentage of stocks in your portfolio can help you grow your wealth and make your money last longer.

Returns from Cash and Bonds Are Quite Insignificant

In the past, Americans were able to get solid returns from cash and bonds alone, but this is no more the case. In fact, returns from these financial instruments are quite lousy, and they will not provide you a hedge against inflations. 

Don’t stress too much about your stock market investments. As long as you’ve done your research, picked the right stocks, and are invested for the long-term, you don’t have much to worry about.