Personal Finance Chapter 7. © EMC Publishing, LLC Kinds of stocks – Common - voting – Preferred - safer Investment Options Stocks.

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Presentation transcript:

Personal Finance Chapter 7

© EMC Publishing, LLC Kinds of stocks – Common - voting – Preferred - safer Investment Options Stocks

© EMC Publishing, LLC Profit from stocks – Dividends – Capital gain / loss Investment Options Stocks

© EMC Publishing, LLC Stock markets – New York Stock Exchange (NYSE) – NASDAQ (tech stocks) Investment Options Stocks

© EMC Publishing, LLC Stock market newspaper listing Investment Options Stocks

© EMC Publishing, LLC Evaluating stocks – Blue-chip – Dow Jones – Bull market – Bear market – S&P 500 – Fortune 500 Investment Options Stocks

© EMC Publishing, LLC Commodities – Futures (contract) – Options (rights) Penny stock Investment Options High-Risk Investments

© EMC Publishing, LLC What do we call a stock that is considered a safe investment in a large corporation? A.Red-hot stock B.Blue-chip stock C.Bear stock D.Dividend stock E.NASDAQ

© EMC Publishing, LLC What do we call a stock that is considered a safe investment in a large corporation? A.Red-hot stock B.Blue-chip stock C.Bear stock D.Dividend stock E.NASDAQ

© EMC Publishing, LLC IOUs – Corporate – Municipal / state – Federal Savings Treasury (bonds, notes, and bills) Investment Options Bonds and Securities

© EMC Publishing, LLC Pool money / shared risk – Portfolio – Diversify Investment Options Mutual Funds

© EMC Publishing, LLC Load v. no-load funds Index funds Investment Options Mutual Funds

Sheila and Bob – start at different ages © EMC Publishing, LLC Investment Options Time Value of Money

Real estate Collectibles © EMC Publishing, LLC Investment Options Other Kinds

What do you think? Discussion © EMC Publishing, LLC How is the real estate market lately? Is it a good investment today? Do you collect valuables? Why? What kinds of collectibles provide the best chance of long-term success? Why? Should investments be evaluated on short-term or long-term results? Why?

Retirement Estate © EMC Publishing, LLC Investment Options Planning

Start planning now! © EMC Publishing, LLC Investment Options Planning

Sources of retirement income – Social Security (supplemental) © EMC Publishing, LLC Investment Options Retirement

Sources of retirement income – Social Security (supplemental) – Company-sponsored Pension Profit-sharing / stock-bonus 401(k) / 403(b) plan © EMC Publishing, LLC Investment Options Retirement

Sources of retirement income – Social Security (supplemental) – Company-sponsored – Other IRA Roth IRA SEP-IRA © EMC Publishing, LLC Investment Options Retirement

© EMC Publishing, LLC When should you start planning for retirement? A.When you are in your 60s B.When you are in your 50s C.When you are in your 40s D.When you are in your 30s E.Right now

© EMC Publishing, LLC When should you start planning for retirement? A.When you are in your 60s B.When you are in your 50s C.When you are in your 40s D.When you are in your 30s E.Right now

Broker Financial adviser © EMC Publishing, LLC Investment Brokers, Advisers, and Planners

Research a company – Newspapers – Online sources © EMC Publishing, LLC Investment Getting Started

Online trading – High-risk – Fees per transaction © EMC Publishing, LLC Investment Getting Started

What do you think? Discussion © EMC Publishing, LLC Will you be able to live on Social Security when you retire? Explain. How can you get additional income for retirement? Are investments for the rich only? How might you start investing now?

© EMC Publishing, LLC