Get started with investing
Watch our video to understand the difference between stocks, bonds, and mutual funds.
What is investing?
Investing is the process of purchasing securities (e.g., stocks, bonds, mutual funds, etc.) with the goal of driving growth, income, or capital preservation.
People may choose to invest their money because they want to improve their life or the lives of their loved ones.
Is investing for people like me?
61% of households in the U.S. own stocks, the majority through a 401(k), according to Gallup.
Understand your options
When it comes to your 401(k) contributions, you can tailor your investment strategy to meet your goals. Here are some of your options:
Stocks are like tiny pieces of companies. When you buy stocks, you own part of that company.
Bonds are like loans you give to companies. In return, they pay you back with interest.
Mutual funds are like baskets filled with different stocks and/or bonds. When you invest in a mutual fund, you're spreading across multiple investments.
Put your money to work
Investing is a key long-term strategy that aims to put your money to work for your future. But if you leave all your savings in cash, it could cost you.
The growth rate of the money you put in a savings account may not even keep pace with inflation, whereas the growth rate of the money you put in the stock market could be much higher, averaging around 10%, based on historical returns.1
Article ByClaudia Newman
Claudia Newman manages the Retirement Education team that helps onboard employees to their Human Interest plan and explains the benefits of a 401(k) plan by offering live training. She has been working in the 401(k) and retirement plan industry in several capacities, including relationship management, sales, and back-office support since 2010.