Investment calculator: Realize the power of long-term savings
Saving over time is an effective way to reach your financial goals and accumulate wealth. To see the power of long-term saving, enter the initial investment amount, an estimated rate of return and how long you plan to save.
Types of investments
It’s helpful to understand the many ways you can save and invest, including these common types of investments:
- Stocks: Investing in stocks allows you to own a small share of a company. There are multiple stock investment strategies, but keep in mind that diversification can help reduce long-term risks by ensuring that all your stocks aren’t concentrated in one area.
- Bonds, CDs and other fixed-income investments: These investments pay a fixed amount at a specific time. They include municipal bonds, corporate bonds, certificates of deposit (CDs), U.S. Treasuries and agency bonds.
- Mutual funds: This investment type allows a group of investors to pool their money in stocks, bonds and other investments to achieve a common goal.
- Exchange-traded funds: An ETF is a fund that holds a variety of securities in one investment category or class. ETFs trade on an exchange and their prices can fluctuate throughout the day.
- Unit investment trusts: A UIT is a portfolio of professionally selected stocks or bonds with a stated expiration date. Unlike mutual funds, UITs are not actively traded.
Diversification is important
You will want to take advantage of the potential for reward while controlling risk as much as possible. Given the market’s volatility and unpredictability, owning a portfolio of just a few securities involves risk. You can help mitigate that risk by building a diversified portfolio of quality investments that you hold for the long term.
Risks of not investing
Although investing poses risks, not investing could mean you won’t be able to retire on your terms. Your financial future depends on minimizing your investment risk while ensuring your portfolio has enough growth potential for you to reach your long-term goals.
Talk to your financial advisor today about implementing a strategy that will help you reach your goals.
This calculator is for illustrative purposes only and does not reflect the performance of any specific investment. It does not take into account the deduction of any fees or taxes. There is no guarantee that the rate of return can actually be achieved. Investments offering the potential for higher rates or return also involve a higher degree of risk.
Diversification does not guarantee a profit or protect against loss in declining markets.