Stock Investing Tutorial 1: Why you should invest in stocks for your retirement



You already know that you should save for your retirement. However, where should you invest your savings?

There are three big categories of investments that can bring you returns in the long run: real estate, bonds and stocks. You might not be aware of it, but if you own a house, then you already have a large investment in real estate. If you have pension fund assets, then you already have a large engagement in bonds.

This brings us to the first reason for stocks: diversification. You should invest your fixed assets in stocks because you already have a high exposure in the other investment classes.

There is a second reason: Economists have proven that stocks achieve the highest returns in the long run.This makes a lot of sense, too, because you as a shareholder are a part-owner of a company. And all managers that are employed by this company are doing nothing else than trying to generate profits for you.