Investing money is like planting seeds for your financial future. Just as a well-tended garden yields a bountiful harvest, strategic investments can grow your wealth over time.
However, if you’re like me, you have a beautiful garden plot with great soil, but you overbought seeds, miscalculated the square footage needed, and can’t seem to find the time to get any of the seeds in the ground according to the instructions on the back of the packet! Every year I end up running out into the garden just before a rain, throwing down some seed and hoping for the best. But now you’re wondering what my poor gardening discipline has to do with investing.
Everything, my friend. When the season doesn’t go as planned, and you feel like the weeds are going to overtake you, you can rest easy knowing that you’re going to fall back on nutrient dense soil, which brings me back to investing. Like any well-maintained garden bed, the stock market stands as a powerful avenue for accumulating and multiplying your wealth. Let’s explore the profound importance of investing money in the stock market and how it can shape your financial journey.
Building Wealth over Time:
The stock market has a long-standing history of generating substantial returns over the long term. Unlike traditional savings accounts with limited growth potential, investing in stocks allows your money to grow exponentially. Over time, the compounding effect can turn even modest investments into substantial wealth. Sometimes it takes time to establish plants like rhubarb, asparagus or berry plants. Patience is key.
Diversification and Risk Mitigation:
Diversifying your investment portfolio is a key strategy to reduce risk. The stock market offers a wide array of investment options across different sectors, industries, and regions. By spreading your investments across various stocks, you can lower the risk of substantial losses from a single company’s underperformance. I never plan fewer than six different varieties of tomatoes or peppers, which usually means my table is overflowing at the end of the season despite a few plants not producing a darn thing all summer long.
Hedging against Inflation:
Inflation erodes the purchasing power of your money over time. One of the stock market’s strengths is its ability to outpace inflation. Historically, stocks have provided returns that, on average, outstrip the inflation rate, helping your wealth retain its value and even grow. Kind of like starting cucumber seeds. One minute you have a cute little seedling and by the end of summer you’re drowning in cucumbers.
Participation in Corporate Success:
Investing in stocks means owning a share of a company. This ownership grants you the right to participate in the company’s growth and success. As the company prospers, the value of your shares increases, resulting in capital appreciation.
Income Generation:
Many companies distribute a portion of their profits to shareholders in the form of dividends. This can provide a steady stream of income, making stocks a valuable asset for those seeking passive income in addition to long-term capital growth. And, to borrow another gardening metaphor, it’s similar to the seasonality of various garden plants reaching maturity and peak production throughout the summer months. Tomato, cucumber, and bean plants all pay dividends all summer long and into the autumn harvest season.
Retirement Planning:
The stock market plays a pivotal role in retirement planning. By consistently investing in stocks, you can build a substantial nest egg that ensures financial security during your retirement years. Many retirement funds and pension plans allocate a significant portion of their investments to stocks due to their potential for growth. Setting up a “watering” schedule is critical. If you’re not nurturing your garden consistently, you’ll likely have a harder time with a consistent return.
Financial Goals Achievement:
Whether you’re saving for a home, education, or a dream vacation, the stock market can help you achieve your financial goals. By strategically selecting stocks that align with your objectives, you can watch your investments grow while getting closer to your aspirations.
Investing in Innovation:
The stock market is a hub of innovation. Investing in up-and-coming industries and innovative sectors not only has the potential for high returns but also allows you to be a part of transformative changes in society.
At Central National Bank, we believe in empowering our customers to achieve financial goals with ease. Therefore, as part of our offering, we’re giving customers access to our next-generation digital investing platform. This way, you can invest like the top 1% does, on the platform you already know and trust, starting from $10. Learn more on https://centralnational.com/whycentral/digital-investing.asp or log in to online banking now and click on Digital Investing to get started!
Digital Investing is offered through Eko Investments, Inc. Eko’s “Investments as a Service” enables Central National Bank to offer digital investments directly on our digital banking platform. Investment products used by Eko are not deposits, are NOT FDIC insured, are NOT insured by any government agency, are NOT guaranteed by the bank, are subject to risk and are subject to possible loss of principal. Fees may apply. Visit https://www.eko.investments/legal to view Eko Investments, Inc. disclosures.
Eko Investments Inc is an SEC Registered Investment Advisor. Brokerage services are provided to clients by Alpaca Securities LLC, an SEC registered broker-dealer and member FINRA. Member of SIPC. Securities in your account protected up to $500,000. For details, please see https://www.sipc.org.
Eko does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Eko’s web site or incorporated herein, and takes no responsibility therefor. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.
Past performance is not a guarantee of future results. Any historical returns or expected returns are hypothetical in nature and may not reflect actual future performance.
Digital Investing Fees
The fees for Digital Investing vary depending on the type of portfolio selected and the underlying securities that make up the investment portfolio. For example, an investment in an Exchange Traded Fund (ETF) generally carries an imbedded fee or expense ratio for fund maintenance. Investments in stocks, bonds or other types of securities generally do not carry the same fee structure as an ETF. As such, Self-Directed “Non-Discretionary” Portfolios are not assessed a Management Fee but may be subject to imbedded fees depending on security choice and allocation.
Pre-Built “Limited-Discretionary Pre-Made” and Hybrid “Limited-Discretionary Hybrid” Portfolios will be assessed a .50% Management Fee. Management Fees are charged monthly in arrears and are automatically deducted from your Digital Investing account. For example, if you have an average balance of $1,000 in your Digital Investment account and choose either a Pre-Built Portfolios or Hybrid Portfolio you will pay $5.00 per year.