This is why investing for the long run in the stock market is important

Investing in the stock market has risk of losing money. That’s why if you are going to invest in the stock market, do it with calculated risk. There are many benefits to having a stock investment portfolio. Investing in the stock market can your protect your money from taxes and inflation.

Protecting your money from taxes and inflation are just two of the benefits of investing in the stock market for the long run.

Inflation

Inflation is when the general prices of good and services increases, which lead to a decrease in purchasing power. What use to cost $1 today, one year later at 3% inflation rate will cost $1.03. So as time passes the dollar loses value because you buy less thing with the same amount of money.

The yearly inflation rate is being less than 3% per year, however, in 2021 because of everything that happens plus the gov printing money, the inflation rate was around 6.8%.

Investing in the stock market for the long run can gain you on average anywhere from 5 to12%. That would protect you from inflation and earn you some money.

Taxes

In order for the government to fund their expenses, taxes are collected from goods and services transactions from the people of the land.

Some people think that taxes is when the government legally steal you money. Failure to pay your taxes in a timely manner is punishable by law. So, regardless of you opinions, pay your taxes. If you don’t like the current laws then work the system or change the laws to your advantage.

Investing in the stock market for the long run can help you protect your money from taxes. Taxes are base on the income bracket and type of investments. For example, there are some investments that are consider qualify investment.

With qualify investments you can pay 0 taxes.

Do you research and start your journey toward financial freedom. This might sound silly, but you don’t know what you don’t know. Once you start making a lot of money, you would be surprise of how many tips and tricks there are in order to protect your wealth.

That’s it for today.

Take a calculated risk.

Now, start and adjust as you go.