Are you Investing?

Many people are interested in investing but most are not sure where to start or who to talk to.  You are never too young or too old to start your investment journey. Investing comes with risks but the sooner you educate yourself on investments and processes the sooner you can dive into the market.

Discovering your goals and outlining a clear road map of what you want to gain with your investment are the first steps to take before beginning your investment journey.  Some investments fulfill short-term goals while others are set up to benefit you long-term.  After you establish your goals with investing, it will become clearer on what types of stocks or companies are right for you to invest in.

Opening and putting money into a savings account is just one simple way of learning to save money and can be a good first step.  Investing in your savings is an option if you want access to your money whenever you want, but in general, interest rates are rather low. This can be a good way of teaching teens to start saving early and generating a little interest while still in high school.  Age is an important factor to consider when deciding how much risk you should take while investing.  The younger you are when you start, the more risk you can take because you have less to loose so it may be smart to look into something more risky than just a simple savings account.

An individual retirement account (IRA) is another account that many people put money in to save for a later date by allowing tax deferred savings for retirement.  An IRA account is not an actual investment but it is a good place to start accumulating more money for later in life.  You can access your money early but you will face an early withdrawal penalty fee.  Putting money into an IRA account can help you have a bit of a money cushion when you reach retirement age.

Investments are one of the only ways to keep up with inflation and one of the best ways to see growth on your money.  It is important to remember that investments are always tied to a risk.  You may win money and you may lose.  There are no guarantees.  When you purchase stocks you are purchasing a small piece of a company and stocks often come with the greatest rewards and loses.  One positive factor of buying stocks is you can actually track the stock market and see how your investments are doing.  You don’t need to check the markets all of the time though.  When you decide to purchase a bond you are essentially loaning money to an entity and you will be paid back plus interest after a fixed period of time.  Spreading out your investments, or diversification, is suggested because if you place all of your money in a particular investment and it fails, then you are left with nothing.

When it comes to investments, start young, do your research, and find out what the greatest return is for your individual goals.  It is never too late to start your investment journey.

For more information on savings accounts please visit us at www.gbtonline.com or click here to find the address and telephone number of your local branch.