Presents JA Stock Market Challenge

Who wants to be a millionaire? Retirement Who wants to be a millionaire?

Pop Quiz: How much to invest? Assuming a 6% return (not too difficult), how much would you have to invest each month to retire with $1,000,000 if you started at age: 23 The following slides are intended for students to guess the numbers.

Age 23: $400

23 - $400 At 23 years old, $400 is hard to find! Potentially paying college loans Not earning much as you start your career Might need a more reliable car Might be getting your own apartment You can wait just a year or two … Right?

Pop Quiz: How much to invest? Assuming a 6% return (not too difficult), how much would you have to invest each month to retire with $1,000,000 if you started at age: 35

Age 35: $1,000

It’s just not a good time… 35 - $1,000 Student loans are gone, and you’re making more money but… You’ve probably got a mortgage, And kids – they’re not cheap! Car payments (larger car for the kids, right?) Oh and taxes (they’ve gone way up!) It’s just not a good time…

Pop Quiz: How much to invest? Assuming a 6% return (not too difficult), how much would you have to invest each month to retire with $1,000,000 if you started at age: 45

Age 45 $2,500

Maybe when the mortgage is paid… 45 - $2,500 Your career is going well – good money now! But the kids are heading to college soon… Oh and you thought taxes were bad before? And $2,500?!? That’s more than the mortgage! Maybe when the mortgage is paid…

Retirement Planning Many retirement options: 401(k) 403(b) SEP (Simplified Employee Pension) IRA (Individual Retirement Account) Employers matching – they match $1 for every dollar employees put in (up to a limit)

Diversification Owning a number of different stocks in various industries that perform differently under a variety of economic conditions Minimizes risk

The Simulation

Big Board Stock Symbol Change since yesterday (dollars and percentage) All-time Low Company Name Current Price The first column contains the stock symbol, followed by the company name. To the right is the price, the price change in both dollars and percentage in the past day Then the price change in dollars and percentage the last 5 days. The all-time low is next. If a stock is currently at its all-time low, it will appear in red. The all-time high is the final column. If the stock is at its all-time high, it appears in green, like Ampere, Hollingsworth and Interstate Gas and Delivery The news is shown here at the bottom of the screen, but at our event, it will appear at the top. It will also show top moving stocks from the previous day, as well as the volume of shares bought and sold. Change in the last 5 days (dollars and percentage) All-time High News (now appears above)

Standings Screen Ranking Last Turn Cash On Hand Net Worth Return on Investment Ranking Team Number and Name Change in Ranking

Charts Screen (click on Stock Symbol) Stock Price For Day

Reality Check Simulation v. Real Life

The Differences There are some differences between the simulation and the real stock market. The differences were made to make the game more exciting and fast-paced. This event is an INTRODUCTION.

Investing Strategy Most investors prefer to invest for the long term instead of trading for short term profits. Investments are commonly held for years, not weeks or months. It is common knowledge that it is nearly impossible to predict short term movements in stock prices, but patient investors can do well in stocks over long periods of time.

Stock Price Movements Daily movements in stock prices are generally quite small (less than 1%). It is not uncommon for a stock to take months or even several years to move more than 10% in price.

Additional Analysis In the real stock market, investors research a LOT about companies before they invest: SEC filings Quarterly and Annual Reports Industry Newspapers and Magazines This isn’t included because it isn’t as much fun.

Too Good To Be True If it sounds too good to be true, it is! NOBODY can “guarantee” results. NOBODY has a “secret formula”. Additional reading on this, Google: Charles Ponzi Bernie Madoff Enron WorldCom