Investments Session : In Review
"Never stop investing. Never stop improving. Never stop doing something new."
Last week Workday hosted an Investment Informational session for all College New Hires! Investing has been something that I have always been interested in, but never had the time to research a lot about.
This was a great session to introduce us new graduates to the basics of investing and financial planning. I am going to share a few things that I learned, and a few things that I didn't learn in the course but did my own research about and thought were helpful. Enjoy!
- Stocks and Bonds, the basics
- Stocks are entities of a company. Thus, when you buy stock, you are essentially buying a piece of the company/a piece of ownership of the company.
- Bonds are when you are loaning a company money with the agreement of getting that money back with interest in the future.
- Bonds are less risky because when a company is paying out their finances, bonds are paid out earlier than stocks are.
- Bonds are extremely sensitive to interest rates. Bond prices and interest rates move in opposite directions. If interest rates go down, then bond prices go up, and vice versa. There are short-term and long-term bonds
- Stocks are riskier but also have a greater and faster return.
- Whether you choose to buy stocks or bonds depends on how fast you want your money, how long you are willing to invest for, and how much money you want.
- Emotional Intelligence when Investing
- When investing, it is very common for the market to be down one day and up the next. It fluctuates constantly, and you should not stress too much about a downturn. It is extremely common, and usually it is just a matter of time before the market picks up again and prices go back up.
- Also, when the market goes down, try to look for stock for companies that you think will go up (have been profitable for a large amount of time and have a good reputation) and invest in that. Think of it like a sale. The stock is on sale, invest!
- Yes, I want to invest in Stock, but how? What website do I go to?
- There are many websites that you could go to, but there are a few that I found and heard about from friends and family members such as Vaguard and Fidelity.
- If you are a new graduate and you are a full time employee, your company may have asked you to make an account with one of the above companies for a 401K account.
- Once you make an account, there are different options that you can choose to invest in. Such as, you can buy stock individually, from each company one by one, or buy stock in bundles.
Do you guys have any more questions or have any topics related to investing that you would like to know about? Let me know in the comments below or in the "Contact" Section above and I will get back to you!
There is another Investment Session coming up in the future, and I will definitely let you know my insights from that session soon!