1. Managing Your Investments Chapter 11 Page 259 Personal investing – using your savings to earn a financial return https://www.youtube.com/watch?v=yuE0Rgg8Pr0

2. Investment Essentials  Four Levels of Investment “Put-and-Take” Account Regular Savings Beginning Investments Low risk, Government bonds, CD’s, tax advantages Systematic Investments Retirement, growth, long range Speculation Taking chances, quick profits, risk of loss

3. Reasons for Investing  Supplement earned income  Make a profit  Minimize tax burdens...pay less now  Retirement income Supplement social security  Stay ahead of inflation What is inflation https://www.youtube.com/watch?v=jvfAR242DrY

4. Risk “Measure of uncertainty”  Minimize by diversifying Many types of investments  Short-term and Long-term risks Which is easier to predict  Inflation and Interest Rate Risk  Political risks Taxes, regulations  Financial Market risk  Industry risk

5. Criteria for Choosing an Investment  Safety  High liquidity  High return  Growth  Reasonable purchase price Example….maybe didn’t really buy for investment  Tax benefits

6. Wise Investment Practices (Avoiding mistakes)  Define goals Be specific and measureable  Go slowly…. wealth isn’t built overnight  Follow through… ”pay yourself first”  Keep good records… need to know where your investments are and how they are performing  Seek advise…. you are not an expert so find one  Keep knowledge current Read about investing and financial news

7. Where to find information  People use to actually read magazines and newspapers Online resources  Financial Services Full-service broker …provide analysis and opinion Well versed in investments Discount Broker …usually provides little to no investment advise to clients but will buy securities at a lower commission

8. Where to find information  Financial advisers – investment planners who are trained to give intelligent overall investment advice based on your goals, age, net worth, occupation, investment experience, etc.. Fee for services or a commission Make sure you know their credentials  Company Annual reports  http://cdn.media.ir.thewaltdisneycompany.com/2012/annual/10kwrap-2012.pdf http://cdn.media.ir.thewaltdisneycompany.com/2012/annual/10kwrap-2012.pdf

9. Investment Tips  Understand that there are no set rules for investing  Make informed choices  Make a simple plan to determine your goals and needs  Give your investment time to grow  Determine how much you are willing to risk  Consider starting with a diversified mutual fund

10. Investment Tips  Start by doing some reading. An excellent place to start is Investing for Dummies  If you don't invest for retirement, or for the college education of your children, or to help meet your retirement goals, then you're most likely guaranteed a future of just scraping by.  The worst thing you can do is nothing.

11. Types of Investments  This type of investment represents ownership in a corporation Stock  This type of investment represents a debt obligation of corporation or government….to you Bond  This investment is purchased from the US government and is extremely safe Treasury Securities

12. Types of Investments  This type of investment pools the money of many investors together and buys a variety of securities Mutual Funds  This type of investment is an agreement or contract written by an insurance company Annuity  Real Estate  IRA – individual retirement account Like a mutual fund with restriction on withdrawal

13. Daily Tasks  Page 273 Facts 1,6,10,12 Apps 1  Page 275 Life Situation #1

14. Other Investments