Investments

The minimum amount you need to open an investment account varies according to the type of investment option that's right for you. An investment account can be started for as little as $25 monthly in a periodic investment plan.

Saving money involves putting money in an interest-bearing account, such as a savings account, checking account or certificate of deposit administered by a bank and insured by the Federal Deposit Insurance Corp. (FDIC), up to a certain maximum amount allowed by law.

Investing, unlike saving, involves some risk and does not have FDIC insurance coverage. With investing, there is the potential for loss of some or all of your money. Investors seek to generate higher returns on invested dollars than on savings account deposits by taking a greater risk with their investment money. Higher-risk investments offer greater potential to pay higher returns, but they also increase the possibility of losses.

Investing is about taking calculated risks in return for potential financial gain, such as a secure retirement, sending children to college or just early financial independence.

Investments, like stocks, bonds and mutual funds, have typically (past performance is no guarantee of future results) delivered higher returns over time than interest paid on traditional savings accounts. But the risks of investing compared to a savings account are greater: There is no guarantee of higher returns and there’s the possibility of losing the principal.

Investment professionals generally suggest diversifying your investments to match your financial goals and needs. Key elements of most investment plans include:

• Determine short- and long-term life goals to get a better handle on how much money you will need to meet your financial objectives.
• Designing a diversified investment strategy that can help your plan succeed by keeping up with the changes in your life.
• Determining your personal tolerance for assuming risk and establishing the timeframe within which you expect to meet your financial goals.

Diversification is a portfolio strategy designed to reduce exposure to risk by combining a variety of investments, such as stock, bonds and mutual funds. A well-balanced portfolio helps give investors some protection against various market peaks and valleys.

While it might seem logical that an investment that yields a higher rate is better, this is not always the case. Your tax bracket can affect your rate of return. Community Bank Wealth Management and Community Investment Services, Inc. are not tax advisors. Consult your tax advisor before making any tax-related investment decisions.

When you work with a financial advisor from Community Investment Services, you have access to a wealth of financial resources. Our financial advisors work closely with you to identify your investment needs and goals, then tailor a plan to fit your unique profile. Our advisors are based in Community Bank branches across upstate New York and northeast Pennsylvania, making us readily accessible our clients.

To open an investment account, please contact your local bank branch and ask to set an appointment with a financial consultant.

Please contact either the financial consultant located in your local Community Bank branch or call the Investments Service Center at 1-800-234-5228.