Normal
Risk means possible loss of money. In theory you can't lose money in a savings/CD account, however in stocks/mutual funds you can end up with less money than you put in. For example, you invest $10,000 into a mutual fund/stock, the fund/stock price drops 10%, you're now $1,000 in the red (your investment is only worth $9,000). This loss isn't realized until you actually sell though. Now on the flip side, this stock/fund could also increase 10% in value/price. Which means if you sold it at that time you'd have a gain of $1,000 (total investment worth $11,000). I meant buying a stock or fund. A CD is pretty much like a savings account with the exception that you can only withdraw it every X months or years. If they allow you to add money every week/month I'd stick with this.
Risk means possible loss of money. In theory you can't lose money in a savings/CD account, however in stocks/mutual funds you can end up with less money than you put in. For example, you invest $10,000 into a mutual fund/stock, the fund/stock price drops 10%, you're now $1,000 in the red (your investment is only worth $9,000). This loss isn't realized until you actually sell though.
Now on the flip side, this stock/fund could also increase 10% in value/price. Which means if you sold it at that time you'd have a gain of $1,000 (total investment worth $11,000).
I meant buying a stock or fund. A CD is pretty much like a savings account with the exception that you can only withdraw it every X months or years. If they allow you to add money every week/month I'd stick with this.
