Word of the Week:
Risk vs. Reward

Definition: All investments come with risk. With financial investments, risk is usually tied to reward. That means investments with the potential to return the most also usually have the potential to lose the most. And safe investments typically don’t return much.

Key Takeaway: Usually, investments that have the potential to return more are riskier.

Challenge: If you would like a low-risk investment, look into short-term certificates of deposit, money market funds, treasury bills, notes, and bonds.

If you would like a high-risk investment, there are many stocks or cryptocurrencies you can put your money into.

Fun Fact: Some investing strategies can let you invest in volatility itself—meaning you make money when the market acts bananas and lose money when it’s calm.