1. Presents JA Stock Market Challenge

2. Who wants to be a millionaire?
Retirement
Who wants to be a millionaire?

3. Pop Quiz: How much to invest?
Assuming a 6% return (not too difficult), how much would you have to invest each month to retire with $1,000,000 if you started at age: 23
The following slides are intended for students to guess the numbers.

4. Age 23:
$400

5. 23 - $400 At 23 years old, $400 is hard to find!
Potentially paying college loans
Not earning much as you start your career
Might need a more reliable car
Might be getting your own apartment You can wait just a year or two … Right?

6. Pop Quiz: How much to invest?
Assuming a 6% return (not too difficult), how much would you have to invest each month to retire with $1,000,000 if you started at age: 35

7. Age 35:
$1,000

8. It’s just not a good time…
35 - $1,000
Student loans are gone, and you’re making more money but…
You’ve probably got a mortgage,
And kids – they’re not cheap!
Car payments (larger car for the kids, right?)
Oh and taxes (they’ve gone way up!)
It’s just not a good time…

9. Pop Quiz: How much to invest?
Assuming a 6% return (not too difficult), how much would you have to invest each month to retire with $1,000,000 if you started at age: 45

10. Age 45
$2,500

11. Maybe when the mortgage is paid…
45 - $2,500
Your career is going well – good money now!
But the kids are heading to college soon…
Oh and you thought taxes were bad before?
And $2,500?!? That’s more than the mortgage!
Maybe when the mortgage is paid…

12. Retirement Planning Many retirement options:
401(k)
403(b)
SEP (Simplified Employee Pension)
IRA (Individual Retirement Account)
Employers matching – they match $1 for every dollar employees put in (up to a limit)

13. Diversification
Owning a number of different stocks in various industries that perform differently under a variety of economic conditions
Minimizes risk

14. The Simulation

15. Big Board Stock Symbol Change since yesterday (dollars and percentage)
All-time
Low
Company Name
Current Price
The first column contains the stock symbol, followed by the company name.
To the right is the price, the price change in both dollars and percentage in the past day Then the price change in dollars and percentage the last 5 days.
The all-time low is next. If a stock is currently at its all-time low, it will appear in red.
The all-time high is the final column. If the stock is at its all-time high, it appears in green, like Ampere, Hollingsworth and Interstate Gas and Delivery
The news is shown here at the bottom of the screen, but at our event, it will appear at the top.
It will also show top moving stocks from the previous day, as well as the volume of shares bought and sold.
Change in the last 5 days
(dollars and percentage)
All-time
High
News (now appears above)

16. Standings Screen Ranking Last Turn Cash On Hand Net Worth
Return on Investment
Ranking
Team Number and Name
Change in Ranking

17. Charts Screen (click on Stock Symbol)
Stock Price
For Day

18. Reality Check
Simulation v. Real Life

19. The Differences
There are some differences between the simulation and the real stock market.
The differences were made to make the game more exciting and fast-paced.
This event is an INTRODUCTION.

20. Investing Strategy
Most investors prefer to invest for the long term instead of trading for short term profits.
Investments are commonly held for years, not weeks or months.
It is common knowledge that it is nearly impossible to predict short term movements in stock prices, but patient investors can do well in stocks over long periods of time.

21. Stock Price Movements
Daily movements in stock prices are generally quite small (less than 1%).
It is not uncommon for a stock to take months or even several years to move more than 10% in price.

22. Additional Analysis
In the real stock market, investors research a LOT about companies before they invest:
SEC filings
Quarterly and Annual Reports
Industry Newspapers and Magazines
This isn’t included because it isn’t as much fun.

23. Too Good To Be True If it sounds too good to be true, it is!
NOBODY can “guarantee” results.
NOBODY has a “secret formula”.
Additional reading on this, Google:
Charles Ponzi
Bernie Madoff
Enron
WorldCom