The Basics of Investing

image of arm using container to pour water on a bar graph to symbolize money growth through investing

Investing can be overwhelming. Let FCCU help guide you on a path that best fits all your future financial needs.


Get started with investing at any age

Investing can range from saving a percentage of your income with a company-sponsored 401k account for retirement to purchasing mutual funds or simply putting money into an interest-earning savings account.    No matter which avenue you choose, investing can be surprisingly easy and rewarding.  Even the smallest investment over time can reap huge rewards in the future.
 
For Example:
Let’s say you are 18 years old and visit Starbucks for coffee every morning on your way to work/school and spend about $5.00.  While their coffee is delicious, you could purchase your own at the store and make it at home.  What if instead of using your $5.00 to buy coffee every morning, you decided to take that money and deposit it into a mutual fund every day with an *8% annual interest until you were 65 years old?  At the age of 65, you would have deposited a total of $85,775.  However, with the annual interest rate at 8%, the total value of that investment would now be over $900,000!
 
*The average Mutual Fund Rate of Return over past 15 years is 8.66%.
 As of Dec. 22, 2020. Source: Morningstar

Invest early and often to get the greatest return.  If purchasing Mutual Funds is not something you can do currently, think of other ways like putting money into a savings account or putting 3% of your paycheck towards a 401k plan.  The hardest part of investing is just getting started.
 
If you would like some additional help or other advice, you can visit one of our certified credit union financial counselors for FREE by scheduling a time to speak with them. 
https://www.fccu.org/Financial-Awareness/Financial-Counselor
 

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