Investing

Because Money Moves

Investing can feel like a vast, intimidating world, but it is fundamentally about growth and patience. Specially for young adults, it is a powerful tool to build a secure future, turning small, consistent actions today into lasting financial freedom tomorrow.

Investing is the act of putting your money into assets—like stocks, bonds, or real estate—with the expectation that they will increase in value over time. Instead of just saving your cash, you are putting it to work to generate more wealth.

Inflation often makes everyday goods more expensive over time, meaning cash in your pocket loses its buying power. Investing helps your money keep pace with or exceed these rising costs, helping you reach goals like buying a home or retiring comfortably

Even if you don't directly interact with financial institutions like the stock market, oil price markets or foreign money exchange markets they directly affect how much you can buy with the money that is in your pocket already

Even if you are not ready to invest yet, it is a good idea to know all of your options.

What is investing?

Types of investments

Traditional

-Stocks

Buying a share of ownership of a company, you profit if the companies value increases.

-Bonds

You let the government or corporation borrow your money for a set period of time and in return you receive interest payments and the return of your principal at the end of the term

-Cash Equivalent

Low risk like savings accounts or Certificate of deposit, often used for safety rather than high return

Pooled Investments

These allow you to invest in many assets at once

-Mutual funds

Pooled money managed by a professional who selects a mix of stock bonds and other securities

-Exchange-Trade Funds (ETFs)

Similar to mutual funds but traded on an exchange market the prices fluctuate daily

-Index Funds

A type of ETF designed to track a specific market like the S&P 500

Advance Investments

These typically have more risk and require more specific expertise

-Real State

Investing in physical property or through a Real State Investment Trust, which is like a stock for property

-Commodities

Physical goods like gold, oil or agricultural products

-Cryptocurrency

Unregulated and decentralized virtual currency, highly volatile

-Derivates

Complex contracts that "derive" value from and underlying asset, often used to hedging or speculations

Here is a quick video on some investing basics from

Strategic Wealth Designers

Investment Accounts

This is something that is often overlooked, but the investment account you use is just as important as the investments themselves

Here are the three main investing account types

1. Employer-Sponsored Retirement Accounts

These are offered through your job and often include employer contributions

-401 K

Contributions come directly from your paycheck often matched by employer and your investments grow tax-deferred

-Roth 401 K

Contributions are taxed now and your withdrawals are tax free in your retirement

Here is an overview of the market and commodities

this affects the money in your pocket and bank account even if you are not an investor

2. Individual Retirement Accounts (IRAs)

These are retirement accounts you open yourself independent of your employer

-Traditional IRA

Contributions may be tax deductible, investments grow tax-deferred you pay taxes when you withdraw at retirement

-Roth IRA

Contributions are made with after tax money, therefore withdrawals at retirement are tax free

There may be contribution limits and income limits at higher earning

3. Taxable Brokerage Accounts

Most flexible type of investment accounts

Withdraw money anytime

invest in anything ( stocks, ETFs, options etc.)

But you pay taxes on dividends and capital gains every year

Just as important as understanding the different accounts is understanding the fees on the accounts. You could end up paying more in fees than the return you will get in the investment

The most important thing when it comes to investment is to not just jump in blindly. Investing requires a lot of research time and understanding. Investing involves many risks, if you do not fully understand what you are doing, you can lose all of your money in a blink of an eye. Know the risks and don't invest anything you can't afford to lose.

Do not be discourage, you can start small with any amount you won't need for at least five years. Focus on learning the basics first, avoid 'get rich quick' schemes, and remember that the best time to start was yesterday—the second best time is today. The sooner you get started the less you need to invest to get the returns you want

Learn the Basics from Trusted Sources

Investor.gov

Shwab Learning Center

US Savings Bonds

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Investing Resources

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Verify Investments and Avoid Scams

FINRA Broker Check

SEC Investor Alerts