📈Investing helps preserve the value of money against inflation and make money work for you.
🔒Risk and reward are interconnected in investing, and diversification helps manage risk.
💰Compound interest allows for exponential growth of investments over time.
🏛️Fixed income securities, such as bonds, provide fixed interest payments and return of principal.
📊Investing in stocks allows ownership in a company and potential capital appreciation and dividend income.
What is the main purpose of investing?
—The main purpose of investing is to preserve the value of money against inflation and make money work for you to reach financial goals faster.
What is the risk-return trade-off in investing?
—The risk-return trade-off states that the higher the risk, the higher the potential reward. Different investment vehicles have varying levels of risk and potential returns.
How does compound interest affect investments?
—Compound interest allows investments to grow exponentially over time by earning interest on both the initial investment and accumulated interest.
What are fixed income securities?
—Fixed income securities, such as bonds, provide fixed interest payments and the return of principal upon maturity. They are considered lower-risk investments.
What are the potential benefits of investing in stocks?
—Investing in stocks allows ownership in a company and potential for capital appreciation, as well as dividends, which are a share of the company's profits distributed to shareholders.
00:08Investing is essential to preserve the value of money against inflation and make money work for you.
03:09Risk and reward are interconnected in investing, and diversification helps manage risk.
06:13Compound interest allows for exponential growth of investments over time.
09:25Fixed income securities, such as bonds, provide fixed interest payments and return of principal upon maturity.
11:20Investing in stocks allows ownership in a company and potential capital appreciation and dividend income.
