Investing basics - Individual Investing Education

Investing basics

Why should I invest?

The magic of compounding
Putting time to work on your retirement savings

Understanding inflation
Your investments may not be growing as much as you think

What types of investments are there?

Stocks and bonds
How to choose the right option

All about bonds
The classic counterbalance to more volatile stocks

Individual retirement accounts (IRAs)
An individual retirement account (IRA) is a tax-deferred account set up by an individual. There are several types available.

How do I manage risk in my investments?

Using diversification to combat risk
Diversification — spreading your money among many different investments — attempts to take a middle road through the highs and lows of market performance.

The value of diversification (PDF)
This chart shows single asset class returns and risk vs. that of asset allocation strategies over the past 30 years.

Single-asset vs. multi-asset portfolios (PDF)
This chart shows single asset class returns and risk vs. that of asset allocation strategies over the past 30 years.

Investing for the long-term

The impact of staying invested during market turmoil
Staying the course during the downturn was difficult for many investors

Developing your investment strategy
Sticking with an investment plan is what separates investors from speculators.

Active vs. passive investing
Describes the basics of active and passive investment approaches and the advantages and disadvantages of each style.

Using indices as benchmarks
Measure performance by comparing apples to apples

Recovering losses from a down market
The impact of investing sooner rather than later

Beat the odds by staying invested (PDF)
Difficult times in the market can make it tempting to take one's losses and cash out.

Do you see risk or opportunity? (PDF)
Learn from bear markets of the past 40 years.

RFS-2673. First used: December 2009.

Value of an advisor