Transcript: WellsTrade Why Invest
JESSICA: Hey, we're headed across the street for lunch. Want to come? Two-for-one tacos.
STEVE: I'll catch you guys later. I'm going over my WellsTrade® investment portfolio.
JESSICA: Investment portfolio? You get a raise or something?
STEVE: No. I've just been watching what I spend so I can put more away each month.
JESSICA: I do that with my savings account.
STEVE: I've got savings too for emergencies and big purchases that I'm planning to make in the next few years. But when you invest in the market, you've got a much greater potential to grow your money over an extended period of time.
JESSICA: I earn interest on my savings.
STEVE: Sure, but it's modest, especially when compared to the higher returns that investments have historically experienced over the long term. Of course, investing in the market also comes with higher risk.
That's why I use the WellsTrade education and research tools to help me make informed investment decisions. But at the end of the day, it's up to you to decide how much risk you're willing to take for the potential of greater returns.
JESSICA: Yeah, I know I need to start investing. But I'll get around to it one of these days.
STEVE: Lots of people wait until they have more money or the time seems right, but the earlier you get started, the better.
JESSICA: But I'm still young. I've got plenty of time to catch up with investing.
STEVE: Actually, time's the biggest asset you have right now. The more time your money has to grow, the more you can benefit from the power of compounding.
JESSICA: What's the power of compounding?
STEVE: It's basically when your interest is earning interest. Over the years, it can grow exponentially. And every day counts.
Look at this hypothetical example. These investors both invested the same amount monthly... reinvested all earnings, dividends, and interest... and earned the exact same rate of return. But one started ten years earlier. And look at the difference.
STEVE: That's the power of compounding
Learn more at wellsfargo.com/investing/wellstrade-online-brokerage.