Why it pays to invest

Education in its general sense is a form of learning in which knowledge, skills, and habits of a group of people are transferred from one generation to the next through teaching, training, research, or simply through autodidacticism. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts

One of the most important life decisions a person makes is to save and invest. Whatever your medium or long-term goal may be, whether it is having money to pay for your children’s education, buying a home, opening a business, paying off a debt, or retiring comfortably, the "Investing in You" program can help you reach your objectives by following four investment principles:

Compound interest is interest that builds up on the money you initially invest (your principal), as well as on the interest your principal earns. Suppose you invest $100, and earn 5% (or $5) in interest in the first year. The next time your interest is calculated, you will earn interest on $105 (principal plus interest)—not just on the $100 you first invested. As you can imagine, this can grow your savings quite rapidly the longer you stay invested.

Whatever your financial circumstances and goals, investing moves you forward by:

  • Getting your money growing right away
  • Boosting the power of your savings, moving you toward your goals more quickly
  • Enabling you to benefit from economic growth around the world
  • Giving you peace of mind in the knowledge that you are taking the steps to a stronger financial future

Investing is more powerful than saving

Most people know it’s a good idea to save. But some hesitate to give up the spending power of $100 today for a future benefit. If you invest wisely, the benefits of your choices soon become clear—because compound interest makes your investments grow more quickly by putting your money to work for you. Your money starts earning interest as soon as it’s invested. Not only that, but any interest you earn also earns interest. The longer you invest, the more compound interest you accrue, and the faster your savings account grows.

This chart shows how compound interest helps your money grow more quickly than simple interest or merely keeping your savings in a non-interest accruing account (putting money aside without earning any interest).

*This example is strictly for illustrative purposes only and is not intended to be representative of the performance of any actual or future investment available to investors. Actual client returns may vary. The statements made in these examples and graphs are not to be interpreted as investment advice or a guarantee of returns or expected performance. You should be aware of the risks inherent in the financial market and discuss these risks with a qualified and registered financial advisor before making any decisions. You cannot assume that profits or gains will be realized or that any recommendations made in any part of this site will be profitable, and the contents of this site are provided for information purposes only.