Investment for so many Americans is the only way that they will have a chance to look forward to a comfortable retirement. That means that these hard working people need to have the opportunity to be certain that the money they are investing is being put into an environment that can minimize the risk while it maximizes the return. If they are going to part with any amount of their money those two factors will be of the utmost importance in their decision. That is why they need to have stable investment opportunities to put their funds into. For the average person this means employer-oriented investment plans. As well, they need to learn about what these plans offer to them and be encouraged to enroll.
The average twenty-five-year-old only becomes a part of these programs forty percent of the time. They do not see, at that age, the advantage to investing their money when they are so young. There is the attitude that there is so much time ahead of them to worry about such things. Instead, they use their disposable income and buy themselves the latest and greatest in entertainment technology. They travel, buy a car or have more clothing they then they could possibly wear. Dinners out are common, but putting anything but meager leftovers into any type of savings is not commonly done.
But, then when a person approaches middle age, around forty, they realize the benefits of a stable, relatively risk-free investment opportunity and it increases to eighty-eight percent of employees who are putting their money into these employee plans. By the time a person sees forty, they start to plan what they want to do once they retire. This is no longer something that is that far away. They see their kids growing up, their spouse working hard and realize that retirement is what they are working towards. So, now they want to put their money somewhere to work for them.
There are actually government programs that are designed to support these plans and encourage employees to invest. They are trying to show the average person the benefits of investing early. They are promoting using these plans because they are safe and will allow the average person to accumulate a nest egg for their retirement.
There are financial companies, as well as banks, that offer similar programs that are not directly employer related. These include guaranteed interest investments, flexible investment annuities, guaranteed investment certificates. All of these are safe, guaranteed stable investment opportunities. The money is put into one of the plans and it earns differing amounts of interest depending on how long you invest it for. The longer it is in for, the higher the interest rate. Putting money in for one year is just as safe as putting it in for five years. Since the idea is not to spend the money you are looking to invest, it seems that making a stable, guaranteed choice and locking your money away at a good interest rate for three to five years is less of a gamble than hoping for better interest rates at the end of a year.