INVESTING YOUR MONEY

WHAT’S THAT?????? INVESTMENT???? ANYTHING YOU BUY NOW THAT YOU EXPECT TO BE MORE VALUABLE LATER

WHAT ARE SOME OPTIONS??

THESE 3 INVESTMENTS COME FROM A BANK! SAVINGS ACCOUNTS CD’S MONEY MARKET ACCOUNTS THESE ARE CONSIDERED VERY SAFE INVESTMENTS!

A GOOD IDEA PUT ENOUGH MONEY IN SAFE, BANK INVESTMENTS TO COVER AT LEAST 3 MONTHS WORTH OF LIVING EXPENSES.

HMMMM, I STILL HAVE SOME MONEY, WHAT NOW?? WHAT ABOUT PROPERTY OR COLLECTIBLES???? LIKE…..

I STILL HAVE SOME MONEY… HOW ABOUT MONEY TO LIVE ON WHEN I RETIRE….??? “Eyera” IRA – (yOU DO THIS ONE.) 401k - (YOUR COMPANY DOES THIS ONE)

WHAT COULD I GET IN RETURN FOR THE RISK I’M TAKING…??? OK, WITH THE MONEY I HAVE LEFT, I’M WILLING TO TAKE SOME (NOT TOO MUCH FOR ME, THANKS!!) RISK…. WHAT COULD I GET IN RETURN FOR THE RISK I’M TAKING…???

THE STOCK MARKET MINIMUM (USUALLY AT LEAST $1000) USEFUL FOR LONG TERM GOALS RISK LEVEL DEPENDS ON THE COMPANY NEGATIVES: CAN LOSE YOUR MONEY, NO GUARANTEE REQUIRES SOME BASIC KNOWLEDGE OF HOW THE STOCK MARKET WORKS

Mutual Funds A ‘collection’ of bundled stocks Managed by a professional Less likely to lose money because not all stocks will go down in value at the same time – decreased risk! Can be bought for as little as $25 per month Returns as high as 35% (WOW!)

What are the riskiest investment? The lottery Speculative (penny) stocks – comes from unproven companies Mining for precious metals

Rule of 72 Illustrates how long it will take to double your money: Formula: 72/ rate of return Example: $10,000 investment Savings act @ 2% = 36 years CD @ 5% = 14.4 years Stock @ 12% = 6 years

Financial Markets Stocks Mutual Funds: Morningstar New York Stock Exchange Mutual Funds: Morningstar