Growing Your Wealth

Savings Accounts/Money Market Accounts Risk Return Low Insured by the government up to $250,000 per person, per account Deposit your money at Bank- Banks loan this money out to consumers and make interest off of it Low- about 1 % now -

CD’s- Certificates of Deposit Risk Return Low Depositing money to the bank for a set time period Insured up to $250,000 by FDIC 1 Year- 1.35% 2 Year- 1.50% 5 Year- 2.25% Rates change with interest rates

Risk Return Gold/Silver Metals Moderate Can buy coins, bars or stocks Can have high opportunity cost versus inflation- it pays nothings to hold Hedge against inflation and high risk times

Bonds (Loan Money to the government or companies) Risk Return Varies (must look at the bond rating) Ratings go from AAA, AA, A, BBB, BB etc. all the way to C)- higher the rating the less risk and lower return. Bond values can fluctuate through supply and demand and interest rates You can always wait to the end of the mature date on treasury bonds and get the interest promised. Corporate Bonds Treasuries Municipal

Real Estate- Buildings or Land Risk Return Flipping/Rentals: Risk Varies/Many Variables- interest rates, overall market conditions, cash flow, building/real estate skills Personal Home Ownership: Low if living for the long term and you keep debt/income ratio low Since 1975- 4.8% for home ownership Since 1952- 6.9% for rentals

Basics of the Stock Market https://www.youtube.com/watch?v=ejjNMnIo3Fg

Risk Return Stock Market The market that buys and sells stocks (ownership in companies) Varies- depends on your risk tolerance and approach Also depends on when you buy and when you sell Historic return on stocks is 7.3%

General Tips on Stock Investing Sell the Losers, Let the Winners Ride Adopt a Long-Term Perspective Buy Low- sell High Understand your risk tolerance and emotions Diversify Buy only what you understand Past Trends often continue Avoid unethical businesses Buy value, quality Keep cash on hand Trust low cost index funds