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Investing 101 - Excited Woman Banking on Computer
January 24, 2024

Back to the Basics: Investing 101

Investment Education

Investing can be a powerful tool to help you with building wealth, achieving financial goals, and securing a brighter future. Whether you are brand new to investing, or simply looking to refresh your knowledge, let's go back to the basics of investing to provide you with a solid foundation for a successful investing journey.

Understanding the Basics: What is Investing?

At its core, investing involves allocating money with the expectation of generating a return or profit over time. Rather than letting your money sit idle, investing gives it the potential to grow through various avenues, from stock and bonds, mutual funds, and more.

Define Your Financial Goals

Before diving into the world of investing, clearly define your financial goals. Whether it's saving for a home, funding education, or building a retirement nest egg, having well-defined objectives will help guide your investment strategy.

What is Risk Tolerance?

Assessing your risk tolerance is crucial to the investment journey. Understand how comfortable you are with the possibility of fluctuations in the value of your investments. Typically, higher potential returns come with higher risk. It is important to carefully consider your risk tolerance when you are crafting your investment portfolio.

Building a Diversified Portfolio

Diversification is a fundamental principle in investing. Spread your investments across different asset classes (stocks, bonds, ETFs, etc.) to reduce risk. A diversified portfolio can help mitigate the impact of poor-performing assets on your overall investment.

Explore Investment Options

Explore various investment options based on your goals and risk tolerance. Common investment vehicles include:

  • Stocks: Represent ownership in a company.
  • Bonds: Debt securities that pay interest over time.
  • Mutual Funds: Pooled funds managed by professionals.
  • Exchange-Traded Funds (ETFs): Similar to mutual funds but traded on stock exchanges.

Start Early and Stay Consistent

Time is a powerful ally in investing. The earlier you start, the more time your investments have to grow. Consistency is key, so aim to contribute regularly to your investment accounts, even if it's a modest amount.

Understanding Fees

Understand the fees associated with your investments. Fees can impact your overall returns. Choose cost-effective investment vehicles and platforms that are aligned with our investment objectives.

Stay Informed and Adapt

The financial landscape is frequently changing, so staying informed is essential. Regularly review your investment portfolio, reassess your goals, and be willing to adapt your strategy based on changing circumstances.

Long-Term Perspective

Investing is a marathon, not a sprint. Keep a long-term perspective and avoid making impulsive decisions based on short-term market fluctuations. Patience is a virtue in the world of investing.

Seek Professional Guidance

Ready to get started?

If you're unsure on where to begin or have complex financial goals, consider seeking advice from a Wealth Management by CommunityAmerica Wealth Advisor. A skilled professional can provide personalized guidance based on your unique situation.


By embracing these fundamental principles of investing, you're well on your way to navigating the basics and setting the stage for success on your investment journey. Remember, investing is a process, and each step you take brings you closer to a financial peace of mind.

Where are you on your investment journey?
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About the Author
George Hart
George Hart

Wealth Management by CommunityAmerica

A natural educator, I’m passionate about guiding you on your financial journey while helping you understand the ‘why’ behind every decision we make. I have a passion for the financial markets along with educating how to best utilize them. With collaboration and mutual understanding, finances can become one less stress in your everyday life.

Call today to set up a no-obligation conversation about your financial well-being.

Guided Investing is an investment advisory service offered by Copper Financial Network, LLC (“Copper Financial”), an SEC registered investment adviser. Brokerage services for Guided Investing are offered by Copper Financial, member FINRA/SIPC. Copper Financial is a wholly-owned subsidiary of CommunityAmerica Credit Union (“CommunityAmerica”). Wealth Management by CommunityAmerica is a marketing name used by Copper Financial. CommunityAmerica and Wealth Management by CommunityAmerica are not broker-dealers or investment advisers.  


See the Guided Investing Wrap Fee Program Fee Brochure for a full discussion of all associated fees and expenses. Account minimums and fees for products available through a Wealth Advisor vary by product. Please speak with a Wealth Advisor for detailed information.

All investing involves risk, including the possible loss of money you invest. Past performance is not a guarantee or indication of future performance. For additional information on Copper Financial and Guided Investing please see our Customer Relationship Summary, Guided Investing Wrap Fee Program Brochure, and our Guided Investing Disclosures.


If you have questions about Guided Investing, please contact us at [email protected] or 833.542.6509.


Investment products offered by Copper Financial:

Are Not Deposits

Are Not NCUA or otherwise Federally Insured

Are Not Obligations of or Guaranteed by the Credit Union

May Lose Value