Financial wellness means investing in your future
Investing in stocks and bonds is a great way to prepare for your future financial security. However, despite its potential benefits, a significant portion of the population still avoids it.
According to a Gallup poll conducted in 2021, only 55 percent of American adults invest in stocks, which is actually an improvement from the previous year’s results. In the UK, a study by AJ Bell found that just 18 percent of adults have an investment account.
One possible reason for the low investment rate is the lack of knowledge and confidence. Many people believe that investing is too complicated or too risky, and they fear losing their hard-earned money. Others are too overwhelmed by the variety of investment options available to them, and therefore, they avoid investing altogether.
However, it is crucial for people to start investing in their future because inflation can erode the value of savings over time. While cash can be great for short-term savings, it may not be enough to meet long-term financial goals. Stocks and bonds, on the other hand, have the potential to grow over time and provide higher returns.
Investing can also help diversify your portfolio and reduce risk. By spreading your investments across different sectors, you can limit the impact of any potential losses on a single investment. Additionally, investing in stocks and bonds can help you stay ahead of inflation by providing returns that outpace the rising cost of goods and services.
On the latest episode of Thought Creators, FAB’s MD & Head of Asset Management, Global Asset Management, Alain Marckus, sat down with mentl founder Scott Armstrong and shared his insight on the UAE’s evolving investment landscape, outlining common mistakes, opportunities and challenges that lie ahead for investors in 2023.