Investing in Funds

Front

Why is it important to start investing as soon as possible?

Back

You have more time for your money to compound.

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What is a Brokerage Account?

Back

An account that is used to buy and sell stocks, bonds, and funds.

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What is Social Security?

Back

Social Security is a government run retirement program.

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What is Dollar Cost Averaging?

Back

Putting regular amounts of money into an investment account at specific time intervals.

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What is an investment?

Back

Putting money into something with the expectation of profit.

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What does compounding mean in investing?

Back

The process where the value of an investment increases because the earnings on an investment earn interest as time passes.

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What is diversification in investing?

Back

The practice of spreading investments across various financial instruments to reduce risk.

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What is a mutual fund?

Back

An investment vehicle made up of a pool of money collected from many investors to invest in securities like stocks and bonds.

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What is a 401(k)?

Back

A retirement savings plan sponsored by an employer that allows employees to save a portion of their paycheck before taxes are taken out.

Front

What is the difference between stocks and bonds?

Back

Stocks represent ownership in a company, while bonds are loans made to a company or government.