April is Financial Literacy Month, a great reminder to focus on improving your understanding of personal finance. At Central National Bank, we believe that knowledge is power, especially when it comes to your money. This month, we’re highlighting the importance of investing and how Digital Investing, our new investing solution, can help you achieve your financial goals.
Investing Basics
Investing is all about putting your money to work with the goal of growing your wealth over time. It can seem intimidating at first, but understanding some basic concepts can make a big difference:
4 Basic Concepts for Investing That Can Help You Start
- Start Small: You don’t need a lot of money to begin investing. Digital Investing allows you to start with a small amount and gradually increase your investments as you become more comfortable. Even small amounts, invested consistently, can grow significantly over time. Think of it like this: Would you rather put $20 a week into a savings account, or use that money to buy a small piece of a company you believe in?
- Diversification: Don’t put all your eggs in one basket. Diversifying your investments across different asset classes (like stocks and bonds) and sectors can help reduce risk. Imagine owning stock in just one company. If that company struggles, your entire investment is at risk. But if you own stock in ten different companies across different industries, the risk is spread out.
- Risk Tolerance: Everyone has a different level of comfort with risk. Understanding your risk tolerance will help you choose investments that align with your goals and personality. Remember, the higher the potential reward, the higher the potential risk. Are you comfortable with the possibility of your investments losing value in the short term if it means they have the potential to grow more in the long term? Or do you prefer slower, steadier growth with less risk?
- Compounding Interest: This is the magic of investing! Compounding allows your returns to earn returns, accelerating your wealth growth over time. Think of it like a snowball rolling downhill: it starts small, but as it rolls, it picks up more snow and gets bigger and bigger.
Digital Investing: Making Investing Simple
- Recurring Deposits: Set up automatic recurring deposits into your investment account. This “set it and forget it” approach makes investing a consistent habit. Allowing you start small but still take advantage of the compounding interest effect.
- Multiple Portfolio Options: Choose from a variety of investment portfolios to match your interests and goals. You’re in control!
- Guided Portfolios: Professionally managed portfolios for a hands-off approach.
- Self-Directed Investing: Build your own portfolio with individual stocks and ETFs.
- Hybrid Investing: Combine guided and self-directed for a personalized approach.
Take the Next Step with Digital Investing
Explore Digital Investing: Log in to your Central National Bank online banking account and navigate to the Digital Investing platform to learn more.
Get Started Today: Don’t wait! Begin your investing journey now and make this Financial Literacy Month a turning point for your financial well-being.
Make this Financial Literacy Month the time you start building a brighter financial future with Digital Investing!
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.