Investing 101: A Beginner’s Guide with Eastex Credit Union

Britney Balderas | Posted on August 12, 2024 |

Now that you’ve built up some money you might be wondering about investing. Investing helps you build up funds to save for a home, send your kids to college and retirement. If you’ve never invested your money, you’ve come to the right place! Eastex Credit Union is here to guide you with beginner tips and tricks to investing your money.

Where To Start

The first thing to determine is how much money you can invest. Start small and then gradually increase the amount once you are comfortable investing. There are so many ways to invest your money it can be overwhelming to know where to start.

High-yield savings accounts – Yes, having a high-yield savings account is investing. You earn interest on your money with this type of savings account.
Money market accounts – This is another type of savings’ account where you can earn higher interest.
Bonds – When you invest in a bond, you’re essentially making a loan to a company or government. In return, you are paid back with interest until the borrowing period ends. There are short-term, intermediate-term, and long-term bonds. The amount of risk is typically minimal and a simple way to expand your investments.
Stocks – Buying stock means you are purchasing ownership in a company. This can be slightly riskier because stock prices go up and down, so earning money isn’t a guarantee. It is recommended to invest in companies that you support, so you are confident in where you are investing your money. For example, if you always drive a Ford, invest in Ford stock. If you love to wear Under Armor, invest in Under Armor stock.

Building Your Portfolio

Now that you have decided where to invest your money, it’s time to build your portfolio. You might be wondering why a diverse portfolio is necessary. Having a widespread portfolio ensures your money is not all-in-one investment. One way to start is by investing in target date funds. With this fund, you can set a date for your investment goal and let this fund run. If you’re not close, it will invest in riskier assets like stocks that typically have a higher return. As you get closer to your investment goal, your target date fund will shift to lower-risk investments. This way you don’t have to always be on the lookout, but occasionally checking in on this fund is suggested.

Invest with Eastex Credit Union

If you’re looking for less riskier investments, then consider our money market accounts. We offer high interest rates that will help you earn more than a regular savings account. Depending on how much you put into your account, determines your annual percentage yield or APY. Eastex Credit Union wants to ensure you hit your investment goals and grow your savings in a low-risk environment.

Start your investment journey with us!

At Eastex Credit Union, we are dedicated to helping guide you through the investing process. If you have questions about our savings accounts, come visit us! We’re ready to help you navigate your finances and make the process simple. Contact us at 409-276-2525 today!