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How to Start Building Your Investment Knowledge


It’s your money and your future, making it important to invest wisely!

To start investing, it will take:

  • goals
  • commitment
  • expertise

There’s no need to feel intimidated! But it’s also a smart move to build your own investment knowledge.

Is Investing the Same as Saving?

No, investing is not the same thing as saving. While they’re related, savings is amassing money, and investing equals making your money multiply.

  • Savings = used for short-term needs, so purchases or needs like a car, vacation, home down payment.
  • Investing = used for longer-term needs, so purchases or needs like kid’s college, retirement, or vacation home.

Also, savings allow easier access to your money, while the funds you use to invest are harder to access.

  • Savings = lower return on your money
  • Investing = much higher potential return on your money

The most important part is starting sooner to give your money more time to grow. For example:

  • Starting amount of $5,000
  • After 30 years in a high interest savings account you'll have $5,807
  • While utilizing an investment account will grow that same $5,000 to $28,717 after 30 years

A few more things to think about when it comes to investing:

  • What are your long-term goals?
  • How much can you afford to invest?
  • Is there a minimum initial investment?
  • Types of investments (i.e. stocks, mutual funds, ETFs)
  • Do you want to pay taxes on your investment gains now or when you retire?
  • How do you invest on your own?
  • Do you need expert help and what does that cost?

Grow your investment knowledge! Check out more investing information – such as retirement basics and why compound interest is important – on the Learning Center!

View Investing Basics

The information provided in these articles is intended for informational purposes only. It is not to be construed as the opinion of Central Bancompany, Inc., and/or its subsidiaries and does not imply endorsement or support of any of the mentioned information, products, services, or providers. All information presented is without any representation, guaranty, or warranty regarding the accuracy, relevance, or completeness of the information.