Investing is a great way to reach your financial goals, but it can seem daunting at first.
The truth is, everyone can become an investor and reap the rewards that come with it. You don’t need to be an expert or have a pile of cash at your disposal to invest.
And the sooner you do it, the better. According to a recent MagnifyMoney survey, 77% of Americans regret not having invested earlier in their life.
Let’s shed some light on three of the common myths about investing that hold you back from growing your money.
Myth # 1: You need a lot of money to get started
Investing may have felt like an exclusive club decades ago when not everyone could afford it, but that’s no longer the case. You don’t need to be a high-powered Wall Street broker or pay exorbitant commissions and fees to have someone invest for you.
With Save®, you don’t even need to have extra cash or cut back on your spending to invest. When you make qualified purchases with the Save Debit Invest card, Save matches your spending dollar for dollar with equivalent investments,1 giving Save customers the potential for a much bigger return from their everyday spending.
In other words, the money you spend on restaurants, gas, or other qualified purchases gets turned into investments. For example, if you spend $2,000 on qualified purchases each month, Save invests $2,000 on your behalf.1 Based on an average return potential of 2.94%2, a single month’s worth of spending can generate $58 in investment returns (net of fees).
When it comes to fees, Save only charges a management fee of 0.59%, if your investment generates a return. If your returns are less than 0.59% that fee no longer applies.
Myth # 2: Investing is too complicated and takes up a lot of your time
With all the investment options available to you, how do you pick “the right” stocks? And the heavy investment jargon that’s being thrown around is enough to make your head spin.
At the same time, finding the time to keep track of your investments feels like a luxury you don’t have. When you use Save, you don’t need to pick stocks or keep up with financial news.
Your investments go into a portfolio of your choice which is managed by the Save team. All you have to do is choose a portfolio that best suits your investment goals and the level of risk you are willing to take by using Save’s Recommendation Tool during account sign-up. For example, if you’re a conservative investor, you might choose a well-diversified portfolio that avoids investing in commodities.
Once you’re all set, you can easily keep track of how your investments are performing by logging in to the Save App or Online Portal at your convenience.
With the Save team looking after your well-diversified portfolio, investing is far less complicated and time-consuming.
Myth # 3: Investing is not worth it – far too risky!
Does investing come with some form of risk? Yes.
Does this make it not worth it? Not exactly.
While investing is risky, there are ways to protect yourself against certain risks and keep your money safe.
Here’s how Save looks after your investments:
- If your investment doesn’t perform well, you won’t lose your money. You just won’t see any returns for that period.
- In the event of zero returns or returns under 0.59%, you won’t be charged a management fee.
- Your checking account is FDIC insured.3
- Save’s well-diversified portfolios help maximize your earning potential and minimize exposure to market volatility.
Save was specifically designed to give your investments a safer way to grow.
1 For each qualified spend using the Save Debit Invest card, Save buys a strategy-linked security whose investment value is equivalent to the dollar spent.
2 Average annual returns are based on hypothetical back-tested performance and are 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. Returns shown are reflective of being invested in the Save Moderate Portfolio from 2006 to present. For more detailed information please see Hypothetical Back-testing.
3To obtain FDIC-insurance coverage on your behalf, Save Advisers partners with various FDIC-insured member banks. The funds you provide will be deposited into accounts at one or more FDIC-insured partner banks. FDIC insurance coverage is limited to not more than $250,000 per qualified customer account per bank. Actual deposit insurance coverage may be lower if you have other funds deposited at the partner bank. You are responsible for determining the amount deposited in each account at the partner banks, and for monitoring the total amount of your deposits at each partner bank, 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 initial funds you provide will be deposited with the partner banks and will be eligible for FDIC insurance. Market returns are held in your Save account and are not FDIC-insured, are not bank-guaranteed, and may lose value. Maximum balance and transfer limits apply. Neither Save Advisers, nor its affiliates, is a bank. Apex Clearing Corporation is a member of 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, your investments are protected 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.