Investment calculator

Saving and investing are key parts of a financial strategy. Saving helps you put money aside for essential needs, but investing in securities, such as bonds, certificates of deposit, or stocks, can help you grow your savings, creating a source of funding for your retirement and other financial goals.

New to investing? Want to compare different investment options? Edward Jones' investment calculator can help you visualize the power of long-term growth.

Once you've got an idea of your investment goals, talk to an Edward Jones financial advisor to help you start on the road to financial stability.

How to use Edward Jones' investment calculator

Edward Jones' investment calculator makes it easy to see how much money you can expect to earn through an investment. Follow these easy steps to get started:

• Step 1 - Enter your initial investment amount: In this section, input the amount of money you're planning on investing. You can always add to this amount later as you earn and save more money.
• Step 2 – Set the rate of return: For this section, choose how much you expect to receive as a return on your investment, expressed as a percentage of your original investment. Different investment types carry different rates of return, as well as levels of risk. Typically, the higher the risk, the higher the rate of return.

• Step 3 – Choose the length of investment: Enter the number of years you plan to keep your investment. Compare the difference in growth between short- and long-term investment periods. Typically, the longer you keep your investment, the better your chances for it to increase in value.

   

  Feel free to experiment with different initial investments, return rates, and investment lengths. If you need help figuring out your options, your Edward Jones financial advisor can help you understand the different types of investments and the related risks and returns.

What types of investments should I look for?

It can be overwhelming to sift through available investment options. Edward Jones financial advisors can help provide a wide range of securities, including these common types of investments.

• Stocks: A stock is a share of a company. Stock ownership entitles the investor to certain benefits, such as being able to vote on company decisions, such as stock splits and mergers, at annual shareholder meetings.
• Fixed-income investments: This group of investments includes municipal bonds, corporate bonds, certificates of deposit (CDs), U.S. Treasuries and agency bonds. They pay a fixed amount at a specific time, usually stated at the time of investment.
• Mutual funds: This type of investment fund is mutually owned by you and other investors. It allows investors to pool their money in stocks, bonds and other investments.
• Exchange-traded funds (ETF): An ETF is a fund that holds various securities in one investment category or class. ETFs trade on an exchange, and their prices fluctuate throughout the day.
• Unit investment trusts (UIT): A UIT is a portfolio of professionally selected stocks or bonds with a stated expiration date. They are not actively traded and generally have a low initial investment requirement.

Be aware of risk when investing

Choosing to invest is a big decision. All investments carry some level of risk, meaning there is a chance you may not earn your initial investment back.

Investments with higher potential returns tend to be riskier, and returns may vary from year to year based on interest rates. The best return on investment is one that helps your investment grow without exceeding your risk tolerance .

Limit your portfolio volatility

By spreading your money across multiple types of investments, you avoid putting all your eggs in one basket. Consider investing in different asset classes that have varying levels of risk. Your Edward Jones financial advisor can help you align the right mix of assets to balance with your risk tolerance.

Master these key financial terms

Financial language can be confusing. Building your vocabulary of common financial terms can help you make better saving and investing decisions.

• Rate of Return: The percentage increase or decrease in your initial investment's value over time.
• Annualized rate of return: The percentage increase or decrease in your initial investment's value on a yearly basis, usually considered over several years.
• Market index: A tool that measures the performance of a specific type of security or basket of securities, and is often used as a baseline to compare the performance of similar investments.
• Volatility: A measurement of the stability of a security or index, which can help investors determine the level of risk they should expect. Lower numbers mean more stability.
• Standard deviation: This calculation measures the average price of a security based on its monthly changes and is used to determine volatility.
• Cost basis: This figure represents the original cost of a security or investment when calculating gains, losses and tax consequences.
• Net investment cash flow: Total of all cash flow, including dividends, interest and reinvestments, minus any cash payouts such as selling a security.
• Investment portfolio: The total collection of investments owned by an investor.
• Diversified portfolio: An assortment of investments with varying degrees of returns and risks.

Work with Edward Jones to invest today

Creating an investment strategy can help you work toward growing your money, living the life you want financially, and retiring on your own terms. Find an Edward Jones financial advisor today to help you start working toward your goals.