One of the best ways to build your wealth is by investing. When you invest, you take your money and put it to work for you. You purchase shares in different assets and (hopefully) receive a portion of the gains in return. Investing is one of the financial keys that can lead to a better future and a successful retirement. However, you need to be careful when investing. Ultimately, it’s always a bit of a risk. Your funds could end up actually becoming less value. In the worst case, they could disappear entirely.
Whenever you invest, you are risking potential loss to court potential gains. Historically, the markets always go up over a long enough timeframe. In the short term, though, it can be a roller coaster — especially if you’re investing in volatile markets. As you prepare to invest in 2021, here are five things to keep in mind.