Why consider Investing?

Learn how investing can help make your money work for you.

What type of Investor are you?

by Ansis Salzirnis  I  November 2021  I  9 min read

Economic Data Puts the EUR and the Dollar in Focus, with the ECB also in Action Today

Investing is a strategy to potentially increase the value of your money while also meeting your financial objectives. Consider the following strategies to put your money to work for you:

1. Keeping ahead of inflation

One important reason to invest is to maintain your nest egg growing faster than the rate of inflation. Inflation rates based on the Consumer Price Index (CPI) show rising costs of essential necessities such as food and clothing. Consider the following: In 1980, $20 bought the same amount as $63.72 in 2018. 1 If you invest, you have the opportunity to grow your savings at a similar or greater rate, making it easier to meet your retirement expenses.

2. Compound growth

When you reinvest your earnings, you have the opportunity to benefit from compound growth. Compound growth allows you to receive returns on both your invested investment and the previous profits you reinvested. Assume you've invested $1,000 for a year at a 5% annual rate. In the first year, you'd make $50. In the second year, however, you would multiply $1,050 by 1.05 to reach the new total of $1,102.50. Compound growth can significantly boost the value of your investments over time. As a result, in order to get the largest potential profit, you should invest as soon as feasible.

Getting started with investing is easy. If you learn about the basic types of investments and find the right advisor, you can begin making more informed financial choices for the future.

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This information is provided solely for educational and illustrative reasons and does not constitute a solicitation or offer to purchase any security or instrument or to engage in any trading strategy. Investing entails risk, including the possibility of losing money. Because each investor's situation is unique, you should consult with your financial advisor to discuss your personal investment objectives, risk tolerance, and liquidity requirements in order to develop a suitable investment strategy.

Tradex Ltd. and its subsidiaries do not offer legal or tax advice. Please consult your legal and/or tax professionals to determine how this information, as well as any anticipated tax consequences, may apply to your circumstances at the time your tax return is filed.

Asset allocation and diversification are financial strategies that can help you manage risk. They do not guarantee investment returns or remove the danger of loss, even in a down market.

Past outcomes are not a guarantee of future results.

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  • Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or Any Bank Affiliate
  • Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested

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