@owunnavictor: Let’s talk about something many people overlook when building wealth using investments in most insurance companies. Often, I see people say their insurance agents encouraged them to invest their retirement and children’s education funds in an insurance or annuity company, which isn't where long-term investments should be. You can save money for years, invest regularly, and even watch your account balance increase, yet still lose purchasing power. How? Inflation. When the prices of goods and services rise faster than the returns on your money, your money buys less than it did before. For example, imagine you have $100,000 invested and your investment grows by 3% in a year. Your money becomes $103,000. But if inflation is 4% over that same period, your purchasing power has actually declined. Your account balance increased, but your money did not grow enough to keep up with rising prices. This is why building wealth is not just about how much money you have. It is also about what that money can buy. The goal should be to grow your money over time while accounting for inflation, investment fees, taxes, and the level of risk you are taking. This is one reason long-term investors explore diversified investments such as low-cost stock index funds and ETFs. They offer the potential for growth over time, although returns are never guaranteed and losses are possible. Keeping money in savings accounts also has a purpose. Emergency funds and money needed soon should prioritize safety and accessibility, even when returns do not beat inflation. The key is knowing what each dollar is supposed to do. Don’t focus only on how much your money has grown. Focus on whether your purchasing power is growing too. Because the real goal is not just to have more dollars. It is to build wealth that can support your life in the future. 📌 Make your money work toward your goals, not just sit there looking bigger on paper. #FinancialLiteracy #Investing #Inflation #WealthBuilding #PersonalFinance

Victor C. Owunna

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Region: US

Thursday 22 October 2026 12:38:25 GMT