Updates, Tips, & Finance News

It doesn’t matter if you’re an expert investor or just starting, the following tips are important bite-sized pieces of knowledge you should find useful.

Right off the bat, it's important to have a few important stats when it comes to investing:

-The stock market averages around 7% a year
-Individual investors average about 4% a year
-Average savings account is 0.08% a year


What you can expect everywhere else

Looks like you should be able to just invest in the stock market and earn 7% a year, right?

Here’s the thing, the stock market averages 7%, but the actual returns can be wildly different. Some years you could see a 20% return, some a 1% return, and some you can even see a negative return.

The main thing is that over time, the market does see a significant positive average return.

Individual investors generally do worse off than the market because of a variety of mistakes. We cover how to avoid making these mistakes in one of the next tips.

Now if investing seems scary, doing nothing can be even scarier.

A lot of people have most of their money sitting in cash. Most savings accounts, if you even have one, generally pay out close to nothing and even many high interest savings accounts are below the inflation rate.

This means that by placing your money in a savings account, you could be "losing" money due to inflation every year.


What you can expect with Round

Here is our performance so far for the first half of this year:

“Round” is in reference to the most aggressive portfolio managed by Round. “Stock Market” is in reference to the S&P 500 index. An index is unmanaged, does not reflect management or trading fees, and one cannot invest directly in an index. “Competition” is in reference to the most aggressive portfolio managed by Acorns Advisers, LLC. The time period measured is 1/2/18-6/30/18. “Return” is calculated as time weighted return and is net of fees. “Risk” is measured by volatility over the same time period. The volatility of the S&P 500 index and Acorns’ most aggressive portfolio are materially different from Round’s most aggressive portfolio. The material in this blog post is for informational purposes only, and we are not soliciting any action based upon it. It does not constitute investment recommendation nor advice and should not be relied upon as such. Some investment products give rise to substantial risk and are not suitable for all investors. The risks inherent in such investments may lead to material loss of capital. Past performance may not be indicative of future results. Results portrayed, including those of indices, reflect the reinvestment of dividends and other earnings, as well as the effects of material market and economic conditions. Different market and economic conditions could have a material impact on performance. Index results are used for comparison purposes only and have been unaltered from their original state as received from independent sources. Historical results reflect returns that a typical investor would have received based on stated fees and do not necessarily reflect returns that actual investors received. Opinions expressed are our present opinions only. The material is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied upon as such. This is neither an offer to sell nor a solicitation of an offer to buy an investment product.

Your portfolio is being managed in a way that is optimized for growth, while your risk is constantly being managed.

This means that we aim to provide more stable returns through high quality investment management and by providing access to prestigious funds. Here's how:

  1. We focus on Total Return, which means that your return is made up of monthly and quarterly dividend payments and the change in the value of your investments.
  2. We allocate you to some of the most prestigious funds that many institutions invest in.
  3. We focus on optimizing for growth, but in times of volatility and risk, our investment team prioritizes protecting your portfolio. This means moving out of areas that we believe are too risky for the return you would expect to receive.

If you skipped to the bottom or just want a summary:

By investing with Round, you will hopefully get a little more sleep and have less of a headache when it comes to growing your money.

In the next tip, we explain a little more about how we invest at Round!


Round Investments LLC, dba Round, is an SEC registered investment advisor. Securities offered through Apex Clearing Corporation, Member FINRA, SIPC.The information provided should not be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered legal, investment or tax advice as it does not take into account the specific objectives, financial situation or particular needs of any specific person. Diversification does not ensure a profit or protect against a loss in a declining market. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. Forecasts or projections of investment outcomes in investment plans are estimates only, based upon numerous assumptions about future capital markets returns and economic factors. As estimates, they are imprecise and hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Investing entails risk including the possible loss of principal and there is no assurance that the investment will provide positive performance over any period of time.To view Round's Brochure, Terms of Use, Privacy Policy, and Disclosures go to www.investround.com