Investing. Investing putting your money to work to earn more money putting your money to work to...

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Investing Investing

Transcript of Investing. Investing putting your money to work to earn more money putting your money to work to...

Page 1: Investing. Investing putting your money to work to earn more money putting your money to work to earn more money.

InvestingInvesting

Page 2: Investing. Investing putting your money to work to earn more money putting your money to work to earn more money.

InvestingInvesting putting your putting your money to work to money to work to earn more moneyearn more money

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Choosing the Best Choosing the Best InvestmentInvestment

Liquidity: how easily in Liquidity: how easily in can become cashcan become cash

Safety: FDIC insuredSafety: FDIC insured ReturnReturn

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The Three Rules of InvestingThe Three Rules of Investing

1. Start Early.1. Start Early. 2. Diversify. (in terms of risk)2. Diversify. (in terms of risk) 3. Buy and Hold.3. Buy and Hold.

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Investment Investment StrategiesStrategies

Diversification: variety in Diversification: variety in your investmentsyour investments

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Types of InvestmentsTypes of Investments

Stocks: ownership shares Stocks: ownership shares in a corporationin a corporation

Bonds: loans investors Bonds: loans investors make to corporations/ make to corporations/ government government

Cash: CDs, bank accountsCash: CDs, bank accounts

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Risk vs. RewardRisk vs. Reward Low-risk investment: Low-risk investment: government bondsgovernment bonds

High risk: stock in new High risk: stock in new companycompany

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Make a risk pyramid!!!!!Make a risk pyramid!!!!!

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Most Americans Invest In…..Most Americans Invest In…..

Mutual FundsMutual Funds

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Tax Deferred InvestingTax Deferred Investing

IRAsIRAs401 (k)s401 (k)s

–PenaltyPenalty–A capA cap