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Invest with the Right Tools

A couple of friends, who use Two Rivers Bank & Trust Personal Financial Planning Resources, leaning against the railing of a fence while two children play in the background

Invest with the Right Tools

Now that you’re ready to go investing, you need to learn about stocks, bonds, and mutual funds, how they’re different, and which make sense for you. If you missed our first blog about investing, in the beginning, you can read it here!

Kyle Hauenstein, Fiduciary Advisor at Two Rivers Bank & Trust, is here to help explain the ins and outs of investing.

What is the difference between stocks, bonds, and mutual funds?

“Stocks, bonds, and mutual funds are financial tools. Like a hammer, a wrench, and a drill, they are each a solution for a unique scenario. Stock reflects ownership in a company. Bonds are, in essence, loaning money to the company. How much money a company is worth changes constantly, hence the volatility in the stock market. For the most part, companies continue to pay their bills regardless of the ups and downs of business leading to relatively less volatility in bonds. Mutual funds use those tools (stocks and/or bonds) to grow wealth. Mutual funds exemplify the saying ‘don’t put all your eggs in one basket.’ For example, you may not have enough money to invest in 500 companies at a time, but if 499 of your closest friends and you MUTUALLY fund that investment, then you can spread out your risk together by purchasing shares of 500 companies.”

What is the benefit of investing in the stock market as opposed to ‘less risky’ options?

“Investing is a risk and reward system. The stock market has, historically, done a better job of keeping ahead of inflation.”

What can a customer expect when working with a financial advisor at Two Rivers? 

“Customers can expect financial advisors at Two Rivers to take time with them. It takes time to understand what our clients need, and it takes time to explain a solution that can meet that need. Just the other day I walked into a mechanic’s shop. I told them what I wanted (my car to stop making funny noises). They listened, and figured out what that meant. Once they knew what was wrong, they explained the solution to me. They used all the right tools to get the job done, and later handed me the keys to a quiet car. Clients know what they want, and what they have. We can help find the right tools to get them there.

What is your best advice for someone who wants to begin investing?

Start now. Compound interest is a powerful tool. That is why Warren Buffett called the stock market the greatest wealth creator of all time. There are many ways to invest, with lots of tools.

Come talk with us at Two Rivers! We’re willing to listen and explain things to you, develop a plan, and get you started now!

Investment and Insurance Products: Are Not insured by the FDIC or any other federal government agency; Are Not deposits of or guaranteed by the Bank or any Bank Affiliate; May lose value.