Why Invest?

Saving money is important, but it’s only part of the story. Smart savers start by building sufficient emergency savingsOpens Dialog within a savings account or through investment in a money market account. But after building three to six months of easy-to-access savings, investing in the financial markets offers many potential advantages.

Investing is an effective way to put your money to work and potentially build wealth. Smart investing may allow your money to outpace inflation and increase in value.The greater growth potential of investing is primarily due to the power of compounding and the risk-return tradeoff.

The amount of risk you carry depends on your appetite — or tolerance — for risk. Only you can decide how much risk you’re willing to take for the potential of higher returns. But if you’re seeking to outpace inflation, taking on some risk may be necessary. An increase in risk may provide more potential for your money to grow.