Make your money grow through informed, long-term strategies
Investing allows your money to work for you, generating returns through compounding over time. While the topic can feel intimidating, the truth is that successful investing doesn’t require complex strategies or large sums of money. It’s about patience, understanding and consistency.
Financial wellness means making informed decisions with confidence. Whether you’re contributing to your UW retirement plan, opening an IRA or exploring personal investments, knowing the fundamentals will help you build wealth intentionally and sustainably.
Why invest?
Saving is essential, but inflation gradually erodes the purchasing power of money kept in traditional savings accounts. Investing allows your money to grow faster than inflation by putting it to work in markets, companies and funds that generate returns over time.
TIAA financial experts describe investing as making your money do more than sit. Even small, consistent contributions can grow significantly thanks to compound interest: the process of earning returns on your returns.
For example, if you invested $100 a month for 20 years and earned an average 6% annual return, you’d have nearly $46,000, even though you only contributed $24,000. Time, not timing, is the most powerful ingredient in investing success.
Understanding risk and reward
Every investment carries some level of risk, being the possibility that you could lose money. Taking calculated risks is what allows investors to earn greater returns. The key is to find the balance between risk and comfort level that matches your goals and time horizon.
Short-term goals (1–3 years)
Should focus on stability — such as savings accounts, CDs or short-term bond funds — since you may need quick access to that money.
Medium-term goals (3–10 years)
Can include a mix of conservative and moderate investments, balancing growth with security.
Long-term goals (10+ years)
Like retirement, allow you to take on more risk since you’ll have time to recover from market fluctuations.
UW financial experts at TIAA recommend diversifying across asset types (stocks, bonds, and inflation-protected securities) to help your portfolio weather changing economic conditions.
Remember: volatility is normal. Staying invested through market ups and downs is often the best strategy.
Core types of investments
Understanding the main asset classes helps you make informed decisions:
Stocks (Equities): Shares of ownership in a company that can appreciate in value over time. They carry higher short-term risk but greater long-term growth potential.
Bonds: Essentially loans to governments or corporations that pay interest over time. They’re generally lower-risk and provide stable income.
Mutual Funds and ETFs: Baskets of investments that automatically diversify your holdings. They allow investors to access multiple stocks or bonds through a single fund.
TIPS (Treasury Inflation-Protected Securities): Bonds backed by the U.S. government designed to protect against inflation.
Many UW employees invest through employer-sponsored plans like the UW Voluntary Investment Program (VIP), UW Retirement Plan, or DCAP. These plans include diversified investment options tailored to different risk profiles.
How to get started
Starting small is not just acceptable, it’s often the best way to begin. Consistency beats perfection in the world of investing.
Define your goals. Identify what you’re investing for (retirement, a home, education) and your time frame.
Assess your comfort with risk. Online tools can help you determine your investor profile.
Start with your UW plan. Contributing even a small percentage to your UW retirement account allows you to benefit from pre-tax savings and employer contributions.
Automate your investments. Set up recurring contributions to make progress without thinking about it.
Review and rebalance annually. Over time, certain investments may grow faster than others, adjusting keeps your portfolio aligned with your goals.
TIAA offers workshops, guides and one-on-one appointments to discuss setting up and optimizing your investments within your UW plan.
Investing mindset
Investing is a long-term relationship, not a quick transaction. Markets fluctuate daily, but over time they trend upward. Trying to “time the market” often leads to missed opportunities. Instead, focus on time in the market. Consistent investing that allows compounding to work in your favor.
Avoid comparing your progress to others or reacting to headlines. Review your plan once or twice a year with a trusted financial advisor or your UW plan representative to ensure you’re on track.
Remember, your investment journey is personal. It should fit your goals, comfort and life circumstances.
Watch and learn
Find a variety of webinar recordings in our Financial Education playlist on YouTube.