In Today’s World Should People Invest Or Just Keep A Savings Account?

happy businessman with heap of moneyIt’s hard to tell what the stock market is doing anymore, isn’t it? The entire world has still yet to fully recover from the economic recession nearly a decade ago. Markets are more globalized than ever, and while the US economy is still suffering, the stock market seems to be thriving. Is it a bubble? Does it make any sense? How can the DOW be so far up while the blue chip companies everyone has depended on for so long are still struggling to get back to levels their stock prices were enjoying prior to the recession?

There are so many things to think about when it comes to where to put your money. Should it be invested, and what should your investment choices be? Is there enough security when it comes to investing in the stock market, or is your money better off in an FDIC insured account? One thing for certain, you could be sacrificing the extra compound interest over the years, which can amount to an account balance that is thousands of dollars less than it would have been. Is that really the case though?

It’s hard to make a good argument for the average person investing in regular stocks right now. The market is changing, and small investors have other alternatives. That of course means they can invest their money without having to simply keep it in a savings account or start a certificate of deposit. In essence, investing in the stock market can still be key.

Think about the mutual funds and exchange traded funds for a moment. These investment vehicles allow for better diversity, and there are many of them with great track records. There will always be risk involved, but investing is key to building a better financial future. How you invest is what makes the difference.