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Following the Rule of 72, potentially double your Market Savings deposit in less than 8 years

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Rule of 72 shows you should double your deposit in 8 years

How long does it take an investment to double in value? Meet the Rule of 72. This is a simplified equation used to estimate the number of years an investment may take to double at a given annual rate of return.

The Rule of 72 states that you can get an estimate of how long a sum of money will need to double by dividing 72 by the rate of return: 

72 / (annual return) = (years for principal to double) 

An example: An investment with a 9% annual return, means your money should double every 8 years.  

The Rule of 72*

YEARS 9% 
$10,000 
$19,926  
16 $39,703
24 $79,111   
32 $157,633 
40 $314,094 

We believe savings accounts should give you that kind of return, not just risking your money in the market, thus why we created the Market Savings program, which combines the safety of an FDIC-insured bank account with the return potential from investing in the market.  

The core investment philosophy of Save is to generate stable returns on savings or deposit instruments and other cash accounts using market investments that do not require any customer outlay of capital but, rather, utilize the economic value of that cash or cash transactions as its principal. 

That economic value could be due to interest that the customer forgoes or savings in fees that would have otherwise been paid directly or indirectly on customers’ transactions. Those external revenues to the customers’ savings/spending are used to finance the investment and ensure it doesn’t lose value.  

Save can achieve such high return potential1 by investing on your behalf in a diversified market portfolio based on your risk preferences. While typical investments in the market can be risky, your Market Savings deposits are FDIC-insured2, meaning 100% of it is protected to the maximum allowed by law.  

That’s what makes it so unique — you get the security of a bank account and the earning potential of an investment portfolio. Maximizing your current savings account’s earning potential will help you build wealth faster. 

The chart below breaks down the Rule of 72 for other return rates compared to the Market Savings program’s 9% average annual return:1 

Rule of 72 Rate Comparison*

YEARS 1% 3% 9% 
$10,000   $10,000   $10,000  
$10,829   $12,668   $19,926  
16 $11,726   $16,047   $39,703  
24 $12,697   $20,328   $79,111  
32 $13,749   $25,751   $157,633  
40 $14,889   $32,620   $314,094 

Your choice: 24 years with traditional savings accounts or a little over 8 with the FDIC-insured 5-year Market Savings term.  

To get an even more accurate comparison with interest rates that fall outside of 6-10%, the Rule of 72 changes. In these cases, you can utilize this compound interest calculator from the SEC to calculate how much your money can grow. 

* This table serves as a demonstration of how the Rule of 72 concept works from a mathematical standpoint. It is not intended to represent an investment. The chart uses constant rates of return, unlike actual investments which will fluctuate in value. It does not include fees or taxes, which would lower performance. It is unlikely that an investment would grow 10% or greater on a consistent basis. 

1 Average annual returns reflect the most recent deposit rates and are based on hypothetical back-tested performance in the Save Moderate Portfolio from 2006 to present and are shown net of fees. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. For client accounts, the average annual return percentage calculated across the full term length of investment will never reflect returns of less than 0%. Calculations of average annual returns based on hypothetical back-tested performance across any term length of investment of one (1) year or greater are based on an assumption of sequential reinvestment of the principal and any returns of each such security into a new hypothetical strategy-linked security effective on the maturity date of the predecessor security. All return figures shown are for informational purposes only and are not actual customer returns. For more detailed information please see https://joinsave.com/hb-moderate.

2 To obtain FDIC insurance coverage, customer funds provided will be deposited into non-interest-bearing accounts at Webster Bank. FDIC insurance coverage for funds deposited at Webster Bank is limited to not more than $250,000 per depositor, per FDIC-insured bank, per ownership category. Actual deposit insurance coverage may be lower if you have other funds deposited at Webster Bank, N.A. Customers are responsible for determining the amount deposited in each account at Webster Bank, N.A., and for monitoring the total amount of their deposits at Webster Bank, N.A., to determine the extent of available FDIC insurance coverage in accordance with FDIC rules. Learn more at: https://www.fdic.gov/deposit/deposits. Only the funds customers provide and deposit with Webster Bank, N.A. will be eligible for FDIC insurance.  Webster Bank is not providing any investment advice or responsible for the purchase or performance of any investment contracts. The funds held in the Apex Clearing Corporation accounts are not FDIC-insured, are not bank guaranteed, and may lose value with a minimum return of zero. Maximum balance and transfer limits apply. Neither Save Advisers, LLC, nor its affiliates, are a bank. Apex Clearing Corporation is a member of the Securities Investor Protection Corporation (“SIPC”), formed by Congress to protect “customers” of broker-dealers and to promote public confidence in the U.S. securities markets. Customers of a SIPC Member that fails financially are afforded certain benefits under the Securities Investor Protection Act (“SIPA”). These benefits are relevant only if the broker-dealer that “carries” a customer’s account fails and is liquidated under SIPA. At Apex Clearing Corporation, your investments are protected by SIPC up to a maximum of $500,000 total, including $250,000 in cash balances. Coverage limitations apply. To learn more about SIPC coverage, visit the SIPC website at www.sipc.org. 

University of Houston Graduate Students Join Save’s Development and Security Teams

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This summer, University of Houston students Nilesh Dikhale and Aditya Pendse will gain startup culture experience before entering their final school year.

This summer, University of Houston students Nilesh Dikhale and Aditya Pendse will work alongside the development and IT security teams, respectively, to gain startup culture experience before entering their final year in graduate school.

As Save continues development on improving our systems and product offerings, Nilesh and Aditya will help the team execute our newest product offerings, including the Wealth Card and Market Savings account, and ensure they’re secure.

For both University of Houston graduate students, the startup environment is an appeal because of the opportunities to own and manage a diverse range of responsibilities. More specifically, Nilesh particularly was impressed with the platform and the accounts themselves.

“Save captivated me with its visionary idea about creating a savings platform that will be beneficial for regular people, as well as improving their financial wellbeing,” Nilesh said. “Secondly, Save’s culture thrives on continuously improving their products and providing the best experience to their customers and this aligns with my goals of exploring ways to improve continuously.”

In his studies at the University of Houston, Nilesh is focused on machine learning and artificial intelligence and his previous projects focused on connecting databases, handling multi-threaded applications, and working with data structures. He also has nearly 5 years of experience as a software developer working in Java, Oracle, SQL, Spring Framework, and Spring Boot technologies.

“I wish to explore and learn the investment domain and how Save fits in that domain,” Nilesh said when asked what he hopes to learn from his internship with Save. “Also, I feel there are a lot of opportunities to learn from in various aspects of software development. I want to study and gain knowledge in the development process and implement the knowledge I get.”

Aditya looks forward to “exploring the diversity of responsibilities concept, which I might’ve missed out on in a Fortune 500 company.”

“Additionally, the possibility of working on almost everything that touches the information security domain was insightful,” Aditya said. “I also want to create cybersecurity policies, procedures, and security reviews; learn about the workings of governance, risk, and compliance domains; work collaboratively with software developers to go deeper into the DevSecOps approach; lastly, carry out configurational changes on various platforms to mitigate the security vulnerabilities.”

The University of Houston graduate students are joining Save along with Rice University’s Durga Parulekar, Yifei Ren, and Anusha Muddapati.

Durga, Yifei, and Anusha are all completing their Master of Computer Science degrees at Rice University and will join Save’s team of developers to build out the technology Save runs on and more efficiently utilize Save’s internal data.

Durga and Yifei will use their experiences across these topics to help the development team build out additional portals for Save’s customer support and development teams to better serve our customers and troubleshoot issues when there are any. With Anusha’s data scientist background, she will focus on how to best utilize the internal data Save has to improve the Save app and online dashboard’s performance, as well as connect with potential customers online while working on the marketing team’s paid strategy goals.

Save continues to invest in the professional development of local Houston students. If you’re interested in Save’s future positions, follow us on LinkedIn.

Save’s summer internship welcomes Rice University computer science students

Finance
Save is proud to welcome Rice University’s Durga Parulekar, Yifei Ren, and Anusha Muddapati to our development team.

Save is proud to welcome Rice University’s Durga Parulekar, Yifei Ren, and Anusha Muddapati to our development team.

Durga, Anusha, and Yifei are all completing their Master of Computer Science degrees at Rice University and will join Save’s team of developers to build out the technology Save runs on and more efficiently utilize Save’s internal data.

Prior to joining, Save connected with all three students to learn more about their education, favorite development projects, what they hope to learn while at Save, and how Houston helps them feel connected to their home overseas. 

Their computer science education will help the Save team improve our products and account offerings. With Anusha’s data scientist background, she will focus on how to best utilize the internal data Save has in order to improve the Save app and online dashboard’s performance, as well as connect with potential customers online while working on the marketing team’s paid strategy goals.

“When I interviewed with Save, I loved how the team discussed how important the data scientist role is,” Anusha said. “I wanted to work for a firm where my work is valued and has an impact on making business decisions and Save seemed to be the perfect place for that. A team that believes in fresh talent and a role that perfectly aligns with my future goals and interests made me decide to take up the offer.

“I hope to expand my academic learning by solving real fintech problems, which I believe is a great start for an aspiring data scientist,” she continued. “Along with improving my technical expertise by collaborating with the marketing, managing, and development teams, I look forward to an amazing networking opportunity this summer.”

Their degrees in computer science encompass topics like programming languages, computer networks, cybersecurity, database management, artificial intelligence, and machine learning. Durga and Yifei will use their experiences across these topics to help the development team build out additional portals for Save’s customer support and development teams to better serve our customers and troubleshoot issues when there are any.

“This degree provides me with the building blocks for every pillar in the tech industry,” Durga said. “Having this knowledge will allow me to leverage technology into projects that benefit society.”

After all, benefitting society is the ultimate goal of Save. Save was founded on the premise that investment vehicles that are traditionally only reserved for professional investors, should be available to everyday people with less risk.  This is yet another factor that attracted the Rice University students to Save.

“When thinking about how I will be contributing to products that make many peoples’ lives better, I feel proud, excited, and accomplished,” Yifei said. “Additionally, I like the team at Save. They all love what they are doing, and they are highly experienced in the financial industry. For example, the CEO and founder, Michael Nelskyla, has worked as the Managing Director at multiple top-tier investment banks. I firmly believe that Michael, the COO Adam Watts, the Director of Engineering Sachin Kulkarni, and other colleagues can drive the company to success together.”

Durga mirrored this sentiment saying, “I think Save is a game-changer for people with no experience in investing to get an opportunity to reap the benefits of higher returns. To use myself as an example, the world of finance is a mystery to me, and I am very excited to learn more about finance and investing.”

Additionally, all three students are a great reflection of Houston’s vast diversity as a city.  Each student joined Rice University from different parts of the world after completing their past degrees. Durga came to Houston after finishing her Bachelor and Master of Science in Information Technology at Mumbai universities. Yifei’s education has allowed him to travel from his home country of China to the Netherlands, and Anusha completed her undergraduate in Visakhapatnam, India.

With being so far from home, Durga, Yifeo, and Anusha can get a bit homesick while at Rice University, but thankfully, Houston provides an ideal culinary landscape to stay connected to hometown cuisine. Additionally, the Save team benefits from their authentic restaurant recommendations.

“I miss the variety of flavorful street food options that I used to have in India since I’m a vegetarian,” Durga said. “I frequently visit a restaurant called Shiv Sagar on Hillcroft. Shiv Sagar offers a wide selection of authentic Indian street food. My favorite dish there is Vada Pav, which is an Indian burger with a spicy potato patty.”

For Yifei, it’s Tiger Noodle House in Rice Village. “The food there is really delicious and authentic. It tastes just like the food in China,” he said. “Most restaurants in China Town are also good, but they are too far away from Rice University, so I don’t often go there.”

Save continues to invest in the professional development of local Houston students. If you’re interested in Save’s future positions, follow us on LinkedIn.

How the Wealth Card’s return potential can cover the annual fee

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Woman smiling about her Save return potential

The world’s first high-yield credit card packs a lot of value. Find out how the return potential makes it worth a spot in your wallet despite the annual fee.

Customers deserve better economic value from their credit cards. 

That’s why Save is partnering with Visa to launch its first credit card — the Save Wealth Card.  

Instead of offering cashback or air miles, the Wealth Card replaces rewards with investments. With an annual return potential of 6%¹ on every single purchase, your earning potential exceeds what leading premium credit card rewards programs deliver (Figure 1). 

A chart showing the return potential comparison between the Save Wealth card versus other premium cards.
Figure 1: Comparison between the Save Wealth Card versus other premium cards.4

The card also comes with many other rewards like a signup bonus of $10,000 in equivalent portfolio investments² and a chance to increase your average return potential up to three times when you shop from brands like Tesla, Electrify America, SoulCycle, Amazon, Whole Foods, and more. 

But what does this mean in terms of dollar value? 

Let’s find out. 

Signup bonus of $10,000 in equivalent portfolio investments² 

Early adopters will get a signup bonus of $10,000 in equivalent portfolio investments² just for signing up for the Wealth Card. Referrals and bonuses like this have an average 3% return potential.5

Let’s break down what this means: 

Once your credit application is approved, at the next trade date, Save adds $10,000 in equivalent investments² to your personalized investment portfolio.

Assuming the average 3% return potential is met, your returns will be about $300 after a little more than a year.¹

Any returns (minus Save’s 0.35% management fee if the annual return is greater than 0.35%) are yours to keep.

For the first year, the annual fee for each card—$750 for the Premium Wealth Card and $300 for the Plus Wealth Card—could be covered up to 40% and 100%, respectively.¹ 

6% return potential on every purchase¹  

Unlike most premium credit cards, the Wealth Card has no category restrictions, exclusions, or cap on returns. Every dollar you spend is eligible for investment matching. This means that you can turn your monthly credit card bill into an investment. Assuming a 6% annual return potential¹ is met, here’s what your returns can look like, depending on your average monthly spend: 

Monthly credit card spendingMonthly earning potential¹Yearly earning potential¹
$1,000 $60$720
$2,000 $120$1,440
$3,000$180$2,160

According to the return potential in the table above, spending just over $1,000 each month can almost cover the $750 annual fee of your Premium Wealth Card. 

If credit cards are your preferred spending method, chances are you’re spending more than that. With the Premium Wealth Card, you can earn more from the money you’re already spending. 

Triple the return potential on some preferred brands 

A 6% return potential on everyday spending is great.¹ An 18% return potential3 is even better. 

The Premium Wealth Card rewards you with a higher return potential from your investments when you purchase from preferred brands. Whether you’re a frequent Amazon shopper or a devoted Peloton member, there are many ways to earn more.  Let’s take a look at how much you could earn with preferred brands using the Premium Wealth Card:

Brand Purchase Return Potential3 Annual Earning Potential3
Amazon $12.99/month Prime membership, Average annual spend for members is $1,000 9%$14.02 (Prime membership), $90 (annual purchases)
Peloton$39/month all-access membership18%$84.24
Apple$1,999 MacBook Pro 12%$239.88
Whole Foods$200 grocery run 9%$18

These are just a few examples of what your investment earning potential can look like. Click here to see all of Save’s preferred brands. 

So, does the Save Wealth Card deserve a spot in your wallet? With potential returns like these, it’s easy to see how the rewards and benefits of the Wealth Card can outweigh those offered by other premium credit cards.

¹ For the Save Wealth Card: Average annual returns are based on hypothetical back-tested performance of the Save Moderate Portfolio from 2006 to present and are net of fees. To achieve the return on the Save Wealth Card, Save purchases a strategy-linked security whose investment value is equal to two times the dollar spent. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. All return figures shown are for informational purposes only and are not actual customer returns. For more detailed information please see Hypothetical Back-testing.

² As a signup bonus for the Save Wealth Card, Save buys strategy-linked securities whose investment value is equivalent to $10,000. This special promotion is subject to change at any time. 

3 To achieve the potential returns for the Save Plus and Premium Wealth Card’s preferred brands, Save purchases strategy-linked securities whose value correlates with [or is determined by] desired portfolio returns. Save will increase each purchase of strategy-linked securities as necessary to create the client’s desired exposure needed to replicate the hypothetical back-tested performance return. For more detailed information please see Hypothetical Back-testing.

4 Average annual return of the Wealth Card is based on hypothetical back-tested performance in the Save Moderate Portfolio from 2006 to present. Return is net of the management fee of 0.79%. Hypothetical back-tested performance is not a guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. Save purchases strategy-linked securities whose investment value generates an average of the stated returns since inception. Card comparisons made based on public disclosures available by other issuers, assuming points are worth 1.5%, monthly spending of $3,500, and a $5,000 equivalent portfolio signup bonus for the Save Wealth Card, as well as, other signup bonuses for each respective card as of 11-23-2021.

5 Average annual returns are based on hypothetical back-tested performance in the Save Moderate Portfolio from 2006 to present and are shown net of fees. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. The return figures shown are for informational purposes only and are not actual customer returns. For more detailed information please see Hypothetical Back-testing.

How to use credit cards: 6 tips to make yours work for you

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Man thinking about his Save Wealth credit cards.

When used responsibly, credit cards are a convenient and secure way to manage your cash flow, build strong credit, and earn rewards from your everyday spending. 

Unfortunately, credit cards are often misused. In the second half of 2021, the average U.S. credit card holder had $5,668 in credit card debt

Read on to learn how to properly manage your credit cards to help you avoid misuse while taking advantage of the many perks it offers. 

1. Pay your balance in full 

In the third quarter of 2021, Americans carried a balance on 52% of all active credit cards.  

Carrying a revolving balance each month or paying only the minimum amount, can quickly pull you into a debt trap. At this point, instead of you using your credit cards, it starts using you

The golden rule of owning credit cards is to pay your balance in full each month. Following this rule means you don’t pay any interest charges or fall into credit card debt. 

To do this successfully, follow a monthly budget and charge only what you can comfortably afford to pay. 

2. Aim to use less than 30% of your available credit 

Always be mindful of your credit card balance and try to keep your utilization ratio below 30%. Your utilization ratio is the percentage of available credit you’re actually using. 

For example, if your total credit card limit is $10,000, you should aim to keep your revolving balance below $3,000. The lower your credit utilization ratio is, the better your credit score. 

A healthy credit score helps you qualify for other credit products like loans and mortgages, and get lower interest rates on those products. 

Does this mean you shouldn’t make any large purchases using your credit cards? 

No, making a large purchase that exceeds your credit utilization ratio won’t affect your credit score, as long as you pay it off within that statement month. 

3. Take advantage of credit cards that offer rewards 

Credit cards allow you to earn hundreds or even thousands of dollars worth of rewards for the purchases you’re already making. 

To get the most out of your rewards, choose a card that matches your financial strategy. For example, if you’re looking for a card with a high return potential, the Save® Wealth card could be a solid match for you. 

The Wealth card is the first credit card that replaces rewards with investment returns, which also makes it a great choice for those who want to start investing but don’t know where to begin. 

With an average annual return potential of approximately 6%1 for the Premium Wealth card, Save exceeds the rewards leading premium credit cards deliver. It also has no variable categories, spending requirements, caps on returns, or category exclusions, which means you earn even more from your everyday spending. 

While rewards are a great perk, you shouldn’t overspend just to chase them. Save lets you earn rewards without having to change your spending habits. 

Click here to learn more. 

4. Regularly track your spending

Keeping an eye on your credit card activity is important. Doing this regularly puts you in control of your spending and helps you catch any potential mistakes or fraudulent transactions. 

Before online banking, you could only do this once a month, when your statement arrived in the mail. Today, you can track your transactions in real-time with the click of a button. 

Save customers, for example, use the Save App or Online Portal to view statements and check their balances and transactions at their convenience. The app also lets customers view the investments made from their spending, their investment gains, and the remaining investment term. 

5. Use your card as a budgeting tool

Following a budget is a healthy habit that helps you save money and create financial stability. 

When used correctly, credit cards can be a great budgeting tool to help you manage your monthly spending. 

For example, when you use your credit cards for all your expenses, you can track your cash flow all in one place using your online accounts. This helps you monitor where your money goes, how much you’ve spent, and how much you have left for the month. 

Seeing your spending in real-time also helps you notice spending patterns you may otherwise not have noticed if you used cash, for example. 

6. Pay your bills on time 

This sounds like an obvious one, but did you know that a whopping 35% of Americans missed a credit card payment in 2018 simply because they forgot? 

Even one late credit card payment can affect your credit score or increase your APR. In addition to that, you might also get hit with a late payment fee. 

Luckily, you can easily avoid this mistake by setting up automatic payments each month. Alternatively, you can log into your mobile app regularly to check your due date and make sure you’re not missing it. 

Making payments on time also helps you build a strong credit history. 

1 For the Save Wealth Card: Average annual returns are based on hypothetical back-tested performance of the Save Moderate Portfolio from 2006 to present and are net of fees. To achieve the return on the Save Wealth Card, Save purchases a strategy-linked security whose investment value is equal to two times the dollar spent. Hypothetical back-tested performance is no guarantee of future performance and actual results will vary. Returns are subject to change daily. Minimum return will always be at least 0%. All return figures shown are for informational purposes only and are not actual customer returns. For more detailed information please see Hypothetical Back-testing.

Glimpse into Save’s product strategy and development directly from the team

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Financial products architect Mohamed El Hioum on investment strategy

Financial products architect Mohamed El Hioum has joined Save to further develop our accounts and portfolios, including an upcoming ESG investment strategy.

As Save continues to grow, we’re proud to introduce recently joined teammates to our customers and readers. This week, we’re bragging about Mohamed El Hioum joining as Save’s Director of Product Development. He’s providing insight into his role at Save and the projects he’ll help develop together with the team.

After studying engineering and applied math, Mohamed has spent over 20 years in the financial industry mostly working for international investment banks, creating, and trading investment products with institutional clients such as public pensions, insurers, and asset managers. He is also a CFA chartered holder.

This blog highlights his work and offers our customers insight into our diversified portfolio management and future product development.

1. What is your primary role at Save, and what attracted you to work at Save?

Mohamed: My role is to work with our partners and providers to expand Save’s account offerings. Our unique position and business model allow us to enhance existing financial products. Our accounts already enhance traditional savings accounts and debit and credit cards, but there’s potential to spread our strategies to other financial products, including insurance and loans.

2. How do you feel Save makes investing more efficient for people?

Mohamed: Most financial products have layers of fees, which means most investors don’t fully benefit from the powers of the financial markets. At Save, we leverage technology, innovation, and market access to allow a broader audience to access the benefits of investing.

Efficiency is only one of the benefits of our products. By coupling this with our innovative solution, our customers can appreciate the benefits of investing and plan their future with more confidence.

Save’s accounts center around our clients. While most financial products focus on incentivizing salespeople and the banks that offer them, we focus on benefiting our customers by investing what otherwise would have been fees to intermediaries. We even pass on collecting our management fee until the customers’ return exceeds our fees. This alone is a first in the industry.

3. How would you break down each of our portfolios for someone unfamiliar with investing?

Mohamed: Depending on a customer’s objectives and risk profile, they can allocate to either a growth, moderate, or conservative portfolio. Each portfolio is diversified into a multi-asset set of ETFs invested into global stocks, bonds, and alternative assets. The growth portfolio is most suitable for the more aggressive investment profile and dynamically allocates to 28 ETFs. The moderate portfolio adds allocation to US inflation-protected bonds in addition to the 28 ETFs, while the conservative portfolio doesn’t invest in highly volatile commodities. Each portfolio is reviewed regularly to ensure it meets its objectives.

4. Can you provide a brief highlight of what you’re developing for Save?

Mohamed: As I mentioned earlier, we are in the process of discussing a variety of new products, but in the short term, I am excited about adding our ESG portfolio to the investment options.

ESG stands for Environmental, Social, and Governance and, when applied to creating portfolios, it means that asset managers like myself are focusing on:

  • A company’s impact on the environment or the risks and opportunities associated with the impacts of climate change on the company, its business, and its industry.
  • A company’s relationship with people and the society, or whether the company invests in its community.
  • A company’s governance issues such as how the company is run and executive compensation.

The nature of our mission, which includes improving the planet, motivates us to include portfolios like this, along with our customers’ preferences. Many of our customers have asked if our portfolios focus on sustainable investing.

I’m happy to say that I’ll have a hand in developing Save’s ESG portfolio. This is just one way and we’re constantly evolving to meet our customers’ needs.

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