Key Takeaways

• • • • • • Start with a small amount and grow your investments over time.
          • Spread investments across different assets to reduce risk.
          • Choose investments that match your risk tolerance.
          • Invest long-term to benefit from returns on returns.

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    Investment products used by Eko are not FDIC insured, are not a deposit, are not obligations of, nor guaranteed by Lake City Bank and may involve risk including possible loss of principal.

  • April is Financial Literacy Month, a great reminder to focus on improving your understanding of personal finance. At Lake City Bank, we believe that knowledge is power, especially when it comes to your money. This month, we’re highlighting the importance of investing and how investing can potentially help you achieve your financial goals.
    

    Investing Basics

    Investing is all about putting your money to work with the goal of growing your wealth over time. It can seem intimidating at first, but understanding some basic concepts can make a big difference:

    4 Basic Concepts for Investing That Can Help You Start

    • Start Small: You don’t need a lot of money to begin investing. Starting with a small amount and gradually increasing your investments can lead to substantial growth over time.
    • Diversification: Avoid putting all your eggs in one basket. Diversifying your investments across different asset classes (like stocks and bonds) and sectors can help reduce risk. Imagine owning stock in just one company. If that company struggles, your entire investment is at risk. But if you own stock in ten different companies across different industries, the risk is spread out.
    • Risk Tolerance: Everyone has a different comfort level with risk. Understanding your risk tolerance will help you choose investments that align with your goals and personality. Remember, the higher the potential reward, the higher the potential risk. Are you comfortable with the possibility of your investments losing value in the short term if it means they have the potential to grow more in the long term? Or do you prefer potentially slower, steadier growth with less risk?
    • Compounding Interest: This is why investing for the long term is important! Compounding allows any investment returns to earn returns, accelerating your wealth growth over time. Think of it like a snowball rolling downhill: it starts small, but as it rolls, it picks up more snow and gets bigger and bigger, assuming favorable weather or market conditions.

    Making Investing Simple

    Recurring Deposits: Automate your investments with recurring deposits into your account. This “set it and forget it” method ensures consistent investing and leverages the potential of compounding interest.

    Multiple Portfolio Options: Choose from a variety of investment portfolios to match your interests and goals. You’re in control!

    • Guided Portfolios: Professionally managed portfolios for a hands-off approach.
    • Self-Directed Investing: Build your own portfolio with individual stocks and ETFs (Exchange Traded Funds).
    • Hybrid Investing: Combine guided and self-directed for a personalized approach.

    Take the Next Step with Investing

    Explore Investing: Log in to your Lake City Bank Digital account and navigate to the Digital Investing platform to learn more.

    Get Started Today: Don’t wait! Begin your investing journey now and make this Financial Literacy Month a turning point for your financial well-being.

     

    Digital Investing is offered through Eko Investments, Inc. Eko’s “Investments as a Service” enables Lake City Bank to offer digital investments directly on our digital banking platform.  Investment products used by Eko are not FDIC insured, are not a deposit, are not obligations of, nor guaranteed by Lake City Bank and may involve risk including possible loss of principal.  Fees will apply. Click here to access Eko’s disclosures.