1. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved.

2. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 17 Saving and Investing What research and planning can you do now to help secure your financial future?

3. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. When you know about different investment opportunities and the financial planning process, you will be able to select a savings or investment program tailored to your goals. Chapter 17 Saving and Investing

4. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. emergency fund speculative investment dividends retained earnings investment liquidity equity capital common stock preferred stock corporate bond government bond mutual fund diversification financial planner tax-exempt income tax-deferred income capital gain capital loss prospectus Chapter 17 Saving and Investing

5. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 17 Saving and Investing

6. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Section 1Preparing for a Savings or Investment Program Outline your financial goals and evaluate how they align with your values. Summarize ways to prepare for and survive a financial crisis. Identify sources of money you can invest. Describe the factors that affect your investment choices. Chapter 17 Saving and Investing

7. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Performing a Financial Checkup Section 1Preparing for a Savings or Investment Program Chapter 17 Saving and Investing Preparing for a Financial Crisis Establish a larger emergency fund. Know what you owe. Reduce spending. Pay off credit cards. Apply for a line of credit at your financial institution. Notify creditors if you are unable to make a payment. Monitor your investments and retirement accounts.

8. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Getting the Money Needed to Start an Investment Program Section 1Preparing for a Savings or Investment Program Chapter 17 Saving and Investing Sources of Money to Invest Pay Yourself First Employer-Sponsored Retirement Plans Elective Savings Programs Special Savings Effort Gifts, Inheritances, and Windfalls

9. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Long-Term Investment Programs Section 1Preparing for a Savings or Investment Program Chapter 17 Saving and Investing

10. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Making Investment Decisions Section 1Preparing for a Savings or Investment Program Chapter 17 Saving and Investing Five Components of Risk Inflation Risk Interest Rate Risk Business Failure Risk Financial Market Risk Global Investment Risk

11. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Making Investment Decisions Section 1Preparing for a Savings or Investment Program Chapter 17 Saving and Investing Sources of Investment Income Savings accounts Certificates of deposit (CDs) U.S. Savings Bonds U.S. Treasury bills Corporate bonds Preferred stocks Mutual funds Real estate Commodities Precious metals Gems Collectibles

12. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Reread the section, “Gifts, Inheritance, and Windfalls.” If you received a substantial income tax refund, would you make the same choice Jihwan made? Explain your answer. Responses will vary. Some students may say they would make the same choice because of the potential for money in the long run. Others may say they would buy the TV because they are young and have time to make investments later. Section 1Preparing for a Savings or Investment Program Chapter 17 Saving and Investing

13. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Describe the two basic types of stock. Compare corporate bonds and government bonds. Identify the main goal of real estate investing. Explain the purpose of diversification. List the steps involved in developing a personal investment plan. Section 2Savings and Investment Options Chapter 17 Saving and Investing

14. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Types of Investments Section 2Savings and Investment Options Chapter 17 Saving and Investing Questions to Ask Before Investing in a Piece of Real Estate Why are the present owners selling? Is the property in good condition? What is the condition of other properties in the area? Is there a chance the property will decrease in value? Will you be able to find an interested buyer? Can an interested buyer get the financing to buy the property?

15. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Developing a Personal Investment Plan Section 2Savings and Investment Options Chapter 17 Saving and Investing

16. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Collectible items, such as sports memorabilia, comic books, and vintage toys, can be valuable and may make for a good investment. Do you think the risk of investing in collectibles is high, moderate, or low? Explain your answer. Some students may say it is a high risk because collectibles may lose value or become worthless, or they can be stolen or damaged. Others may say it is a low or moderate risk because collectors who are experts on the items may have a solid base of safe investments and may feel confident in making speculative investments. Section 2Savings and Investment Options Chapter 17 Saving and Investing

17. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Explain the role of a financial planner. Describe the actions you should take when managing your investments. Identify sources of investment information. Section 3Reducing Risk and Sources of Information Chapter 17 Saving and Investing

18. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Financial Planners Chapter 17 Saving and Investing Section 3Reducing Risk and Sources of Information Types of Financial Planners Fee-Only Planners Fee-Offset Planners Fee-and-Commission Planners Commission-Only Planners

19. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Financial Planners Chapter 17 Saving and Investing Section 3Reducing Risk and Sources of Information Basic Services of a Good Financial Planner Assess your current financial position Offer a clearly written plan with recommendations Discuss the plan with you and answer questions Help you keep track of your progress Guide you to other financial experts as needed

20. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Financial Planners Chapter 17 Saving and Investing Section 3Reducing Risk and Sources of Information

21. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Managing Your Investments Chapter 17 Saving and Investing Section 3Reducing Risk and Sources of Information What Should You Do to Manage Your Investments? Evaluate Investments Monitor Investments Think About Tax Considerations

22. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Managing Your Investments Chapter 17 Saving and Investing Section 3Reducing Risk and Sources of Information Taxable Income Includes Dividends Interest Income Rental Income

23. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Earned interest and dividends from savings accounts, investments, and rental income are taxed like ordinary income. Explain whether or not you think this is fair. Some students may say it is fair because it should be taxed like any other income that you earn. Others may say it unfair because you already paid taxes on the money that was invested. Chapter 17 Saving and Investing Section 3Reducing Risk and Sources of Information

24. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Economic Institutions Chapter 17 Saving and Investing Banks Not-For-Profit Organizations Corporations Stockbrokers Real Estate Agents Financial Advisors

25. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 17 Saving and Investing

26. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 17 Saving and Investing

27. Glencoe Business and Personal FinanceCopyright © by The McGraw-Hill Companies, Inc. All rights reserved. End of