This document is a presentation on the fundamentals of investing that covers several key topics:
- It defines investments as assets purchased with the goal of providing additional income but with the risk of loss. Investments are less liquid than savings.
- Common investment tools include bonds, stocks, real estate, mutual funds and index funds. Each provides different types of returns like interest, dividends, rents or capital gains.
- Diversification and asset allocation are important strategies for reducing risk. Investors should consider their risk tolerance and time horizon when choosing investments.
- Tax-advantaged retirement accounts can help savings grow tax-deferred or tax-free until withdrawn. Employer-sponsored plans may include matching funds.