PERSONAL SAVINGS AND INVESTMENT ELEMENT #46

Why personal savings and investment? Helps achieve financial goals: Emergency savings fund Down payment on home Buying cars Large purchases Retirement funds College funds Letting money make money

Different options for savings/investing Savings account Certificate of Deposits Bonds Stocks Mutual Funds

Personal Saving Accounts Helps reach short- and long-term financial goals Easy to withdraw/deposit money Really low interests rates – not going to “make” money

Certificate of Deposits (CD) An agreement between an individual and a bank for the individual to keep funds in account without touching the funds Higher interest rate than savings account Money is locked up for an extended period of time Early withdrawal penalties

Bonds When companies/government need money, they sell bonds to individuals. When an individual buys a bond, the individual becomes the lender. Government bonds have lower interest rates. Low-risk, return depends on company/government paying off debt

Stocks When buying stock, the purchaser takes an ownership stake in a company. Costs money to buy stock and sell stock (brokerage fees) High risk for high-return, low risk for low-return

Mutual Funds Actively managed basket of stocks, bonds, and other securities. Portfolio managers actively invest your funds Lower risk than individual stocks.

Resources Command Financial Specialist Fleet and Family Support Center Save and Invest - https://www.saveandinvest.org/military Military Money - http://www.militarymoney.com Stash Invest - https://www.stashinvest.com Navy Marine Corps Relief Society – https//www.nmcrs.org