Chapter 10 Basics of Saving and Investing

What Are Systematic Saving and Investing Strategies? Systematic saving involves regularly setting aside cash to achieve goals. Systematic investing is a planned approach to making investments on a regular basis. Market timing involves buying and selling stocks based on what the market is expected to do. 10-3 Strategies for Saving and Investing Slide 2

Stock Trend Line Investment tracking involves making investment choices by following stock prices over time. 10-3 Strategies for Saving and Investing Slide 3

How Can You Reduce Investment Risk? 10-3 Strategies for Saving and Investing Slide 4

How Can You Maximize Investment Return? A bull market exists when stock prices are steadily increasing. A bear market exists when prices are steadily decreasing. Economic conditions (growth or decline) can affect investment strategies. 10-3 Strategies for Saving and Investing Slide 5

Focus On . . . Dollar-Cost Averaging The systematic purchase of an equal dollar amount of the same stock at regular intervals 10-3 Strategies for Saving and Investing Slide 6