1. “Stop trying to keep up with the Jones, they are broke” Pat Foran

2.  Write down what you know about investing.  What confuses you or what questions do you have about investing?

3.  It is not how much you make, it is how you spend and save.

4.  Save 10% of your income.

5.  $20/week

6. ◦ example 1:  Save each week Interest 10 years you’ll have  $7.00 5% $4,720  14.00 5% 9,440  21.00 5% 14,160  28.00 5% 18,880  35.00 5% 23,600

7.  Rate 5 yrs. 10 yrs. 15 yrs 20 yrs.  5% $ 5,525 $12,578 $21,578 $33,065  6% 5,637 13 181 23,276 36,786  7% 5,751 13,816 25,129 40,995  8% 5,867 14,487 27,152 45,762  9% 5,985 15,193 29,361 51,160  10% 6,105 15,937 31,772 57,257  11% 6,228 16,722 34,405 64,203  12% 6,353 17,548 37,279 75,052

8.  savings account  chequing/savings account  Usually small amounts of interest

9.  to determine about how many years it will take to double your money:  72 divided by the interest rate = Years to double investment  72 divided by a number of years to determine the Interest rate required to double your money in that period of time.

10.  How long would it take to double your money in an account that paid 6% per year?  What interest rate would double your money in five years?

12.  Handout

13.  When you make a financial investment, you are setting aside money with the expectation that you will receive a profit.  You must invest money in order to make money. Personal investments such ◦ Bonds ◦ GICs ◦ Stocks ◦ Mutual Funds ◦ RRSPS ◦ Tax Free savings accounts

14.  what they are and how they work  Financial institution pays a fixed amount of interest for a fixed amount of money for a fixed amount of time, usually for longer than a year  Most institutions require a larger minimum deposit than for a term deposit

15.  benefits  No risk  Simple  No fees  Offers higher interest rates than a savings account and term deposit

16.  trade-offs  Money “locked in” for fixed and longer term, compared to term deposit  Withdrawal penalty if cashed before expiration date (penalty can be higher than the interest earned)  Note: GICs mature if the holder dies before the maturity date.

17.  Save up to $5500 annually and it will grow tax free.  You can take the money out at any time without paying a penalty.  You do not receive a tax deduction  You do not pay a tax penalty  Must be 18 and over

18.  what they are and how they work  Plans that help individuals set aside money to be used after they retire.  Income tax not immediately due on money put into a retirement account, or on the interest it makes.

19.  Income tax paid when money is withdrawn.  Penalty charges apply if money is withdrawn before the maturity date, except under certain circumstances.  Income after retirement is usually lower, so tax rate is lower

21.  Handout

23.  What are your goals? What are you hoping to achieve from your investments?  What is your target rate of return – that is, what are you hoping to earn from your investments?  What is your level of investor knowledge and experience with investing? 

24.  What is your “risk tolerance?” What level of risk are you are comfortable with?  How much do you have to invest?  What is your “time horizon” – at what points will you need money – and how much will you need?

25.  each year billions of dollars are lost to fraudulent investments. Some of the most common include: Don’t write the following.  Illegal pyramids, insider trading, and unlicensed investment brokers  High-risk “penny” stocks and fraudulent securities  Fraudulent franchises and business opportunities

26.  http://www.cbc.ca/fifth/episodes/2009- 2010/earl-jones-in-trust http://www.cbc.ca/fifth/episodes/2009- 2010/earl-jones-in-trust

27.  1. What are the different things people can do with their money?  2. Why is saving important?  3. What are some ways to try and save money?  4. What is the purpose of investing?  5. Why might you choose to work with an advisor?

28.  6. What factors can affect a person’s comfort level with risk?  7. Why is investing important to the economy?  8. What are some key criteria to consider when making decisions about money?

29.  The Johnson family includes Marv (age 34), Gail (33), Andrew (8), and Molly (4).  What are some investment goals that might be appropriate for this family? /2  What types of investments might be used to achieve these goals? /2

30.  What type of investment or savings option would be the best for the following:  High school student  College/University student  University graduate, first job, income - $35000/per year  50 year old, full time job – $65000/year, would like to retire in 10 years

31.  1. How long would it take to double your money in an account that paid 6 percent  per year?  2. What interest rate would double your money in five years?

32.  http://www.cbc.ca/thenational/indepthanalys is/thebottomline/2013/01/planning_for_retir ement.html http://www.cbc.ca/thenational/indepthanalys is/thebottomline/2013/01/planning_for_retir ement.html