Investing

Simply put, a fund is a pool of money intended for a specific purpose. There’s no limit to the kinds of funds, but common varieties include funds for college and retirement.

A mutual fund lets you pool your money with other investors. Together, you can buy a collection of securities—such as stocks and bonds—across multiple corporations or other issuers (governments, investment trusts).

Workplace retirement accounts can help you reach your retirement goals. These are facilitated via work, meaning you can choose a percentage from your gross income that works within your budget. These often offer tax advantages that can incentivize your investing.

An IRA (Individual Retirement Account) can be a good option for people who don’t have a retirement account through their employer, and a good supplement for those who do. IRAs are tax-deferred so that withdrawals can be tax-free after a certain age. This is a good way to build up sizable retirement savings in a matter of years.

A fractional share is when you own less than one full share of a company. Fractional shares make it possible to invest in stocks on a shoestring budget, and can be a low-cost way to diversify your portfolio. 

Index investing, also called passive investing, is an investment strategy in which you invest in a mutual fund or exchange-traded fund (ETF) that tracks a particular index. It can be appealing for people who don’t have the time or experience to research specific stocks, bonds, or other investments.

If you’re risk-averse, savings bonds — or Treasury securities — may be the right investment for you. You can buy savings bonds that mature in as little as 30 days or as long as 30 years.

Certificates of Deposit (CDs) are little-to-no risk investments, and typically feature low rates of return. The upside is that you know precisely how much money you will have when the CD matures.