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Investing Basics

The goal of investing is to set aside money and have that money work for you so that you can fully reap the rewards of your labor in the future. Warren Buffett defines investing as "…the process of laying out money now to receive more money in the future." Investing does come with the risk of loss.

You do not need a large sum to start investing. You can begin with a smaller amount and increase or decrease depending on your income.

Many banking institutions have an investment banker that can guide you in the process and aid you in deciding what is best for you.

Types of Investments

  • Annuities: Tax-deferred insurance product, annuities provide a steady stream of income at retirement.
    • Who can help with this? An insurance provider.
  • Certificate of Deposit (CDs): Secure form of deposit, where money must stay in the bank for a certain length of time to earn a promised return.
    • Who can help with this? Bank or credit union
  • Mutual Funds: A professionally managed investment fund that pools money from many investors to purchase securities. Mutual funds have many options and can be low or high risk.   
    • Who can help with this? Investment Banker
  • Stocks (AKA Shared or Equity): A type of investment that signifies part ownership in a corporation. Stocks are bought and sold predominantly on stock exchanges, but can be sold privately.
    • Who can help with this? Stock traders, brokerage firm

Investing Apps

  • Acorn: Helps you invest your money by rounding up your purchases. You buy something at a store that costs $3.50, Acorn will invest $0.50 into your account.
  • Betterment: The ability to build an individualized portfolio, with online access to certified financial planners.
  • RobinHood: Ideal for low-volume traders or those with simple needs.