1. Investing 101
How to grow your money wisely

2. What’s an investment?
An investment is something you buy with the expectation that it will increase in value over time.

3. What are the different types of investments?

4. Real Estate
Land, office buildings, houses, warehouses, rental property

5. Tangible Assets
Coins, bullion, collectibles (classic cars, trading cards figurines, antiques)

6. EQUITIES
STOCKS, MUTUAL FUNDS, COMMODITIES, FUTURES CONTRACTS

7. Debt Instruments
Corporate Bonds, Treasury Bills, Municipal Bonds, Mortgage Securities, Personal Loans

8. All You Need to Know About Stocks!
Common stock
Undivided, voting, ownership in a corporation
Preferred Stock
Undivided, non-voting, ownership in a corporation, pays dividends before common stock

9. All You Need to Know About Stocks!
Dividends
Profits paid to shareholders
Capital Gains
Profits reinvested in the corporation which increase the value of your stock

10. All You Need to Know About Stocks!
Pros
Stock Market outpaces inflation
Better rates of return in the long run over other investments
Cons
Investment risk
Price Fluctuations
Difficult to time investments

11. BONDS!!!! Corporate Junk Municipal Treasury Balances yield with risk
High yield High risk
Municipal
Tax Free
Treasury
Backed by the full faith and credit of The United States
BONDS!!!!

12. Characteristics of Bonds
Face Value
The printed value of the bond
Maturity
The time at which the bond is redeemed for its face value

13. Pros and Cons of Bonds Pros- provides current income
maintains asset value
liquidity
Cons-
Inflation risk
Investment risk
Early Call

14. MUTUAL FUNDS What are they?
An investment tool which allows small investors to hold a diverse portfolio of stocks without the associated costs and time

15. MUTUAL FUNDS Where do I get them?
Brokers
Direct Sales
Internet
How can I tell a good one from a bad one?
Newspaper
Financial magazines
Rates of return

16. MUTUAL FUNDS Pros Easy to buy and sell Easy to manage
Allows small investors the advantage of a diverse portfolio
Cons
Investor has little control over mutual fund investment decisions
High rates of return in some stocks are counteracted by low rates of return on others

17. Want to Buy Some Land?
Real Estate
Land
Real Estate Investment Trust

18. Pros and Cons of Real Estate
Easy to understand
Useful
Generally increases in value
Cons
Not liquid
Relatively Expensive
Prices don’t always go up

19. Commodities
Hogs, pork bellies, frozen concentrate o.j., corn, soybeans, gold, silver
ProHigh Returns
ConDifficult to Understand, You can lose your shirt!

20. Options AND Futures Options Futures
Certificate which allows you to purchase stock at a predetermined price
Generally below market level
Futures
Contracts which allow businesses to lock in prices for currencies and commodities

21. Protecting Your Investment From Uncle Sam
IRA-individual retirement account
ROTH IRA-after tax IRA
SEP- simplified employee pension
401(k)- retirement plan with matching
403(b)- retirement plan for teachers, professors
TSA- Tax Sheltered Annuity
Pension- Retirement package from company