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Investing does not have to be complicated for you

Take the first steps toward a sound investment strategy

Investing does not have to be complicated for you

Take the first steps toward a sound investment strategy

Investing Terms and Concepts

Investing doesn't have to be complicated. Learning some basic concepts will help you take the first steps toward a sound investment strategy. We’ve explained some common investing terms to help you live brighter on your investment journey.

  • Evaluating Performance: After your investments are set up, you monitor the investment’s performance. How are they working within your portfolio toward your goal? Talk with your Financial Advisor/Consultant to know what to expect with your investments and statements.
  • Asset Allocation: The mix of certificates, stocks, bonds, and cash in a retirement account. The proportions aim to balance risk and reward based on the investor's goals, risk tolerance, and investment horizon. Asset allocation does not ensure a profit or protect against a loss.
  • Compounding: An asset's ability to generate earnings, which are then reinvested in order to generate their own earnings. The more time money has to grow, the more opportunity you have for compounding.
  • Diversification: Mixing different investments to limit financial risk. This is accomplished by spreading money across major asset classes (stocks, bonds, etc.) or different investment options within one asset class (mix of stocks from large and small companies). There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
  • Rebalancing: Periodically buying or selling assets in your portfolio to maintain your original desired level of asset allocation. Often done annually, it should also be done any time your risk tolerance changes.
  • Investment Risk: All Investments carry some degree of risk. When you invest, investors make choices about what to do with their financial assets. Risk is any uncertainty with respect to their investments that has the potential to negatively affect the investor’s financial welfare.


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Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC.) Insurance products are offered through LPL or its licensed affiliates. Redstone Federal Credit Union® (RFCU®) and Redstone Brokerage Services (RBS) are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using the name RBS, and may also be employees of RFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of RFCU or RBS. The RBS site is designed for U.S. residents only. The services offered within this site are offered exclusively through our U.S. registered representatives. LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: AL and TN.

Redstone Federal Credit Union (“Financial Institution”) provides referrals to financial professionals of LPL Financial LLC (“LPL”) pursuant to an agreement that allows LPL to pay the Financial Institution for these referrals. This creates an incentive for the Financial Institution to make these referrals, resulting in a conflict of interest. The Financial Institution is not a current client of LPL for brokerage or advisory services.

Please visit https://www.lpl.com/disclosures/is-lpl-relationship-disclosure.html for more detailed information.

Securities and insurance offered through LPL or its affiliates are:

Not Insured by NCUA or Any Other Government Agency Not Redstone Federal Credit Union Guaranteed Not Redstone Federal Credit Union Deposits or Obligations May Lose Value

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