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Investing Basics

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Investing Basics

Learning how-to invest can be an overwhelming task. But once you figure out what to do, you'll have a better chance at retiring with confidence. Here are a couple videos to help you understand the basics of investing.

Invest Early

Investing early and often is a key factor when it comes to retirement planning. Say you started investing $100 per month from age 25 to 35 and you earned an average of 5% per year. You’ll end up with way more at retirement age than if you started at age 35 and invested that same $100 a month all the way from age 35 to 60.

While it may be tempting to put off saving, research shows that beginning to invest in your 20s gives you the best retirement prospects later in life.

Dollar Cost Averaging

Dollar cost averaging is a strategy that can make it easier to deal with uncertain markets by making purchases automatic. Instead of investing a lump sum all at once, you can invest a smaller consistent amount at set intervals, like once a month, once a paycheck or every Tuesday.

This will average out your cost, so you can stop worrying about day-to-day fluctuations in your investment, and look at the big picture! It also supports an investor's effort to invest regularly.

If you haven't started investing, it's not too late! Save money from each paycheck into different investment products to create a balanced portfolio for your future.

It’s a Money Thing® is a registered trademark of Currency Marketing and is in partnership with Randolph-Brooks Federal Credit Union (RBFCU) to offer a digital library of financial topics.

Information in this article is general in nature and for your consideration, not as financial advice. Please contact your own financial professionals regarding your specific needs before taking any action based upon this information.

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