1. Growing Your Wealth

2. Savings Accounts/Money Market Accounts
Risk
Return
Low
Insured by the government up to $250,000 per person, per account
Deposit your money at Bank- Banks loan this money out to consumers and make interest off of it
Low- about 1 % now -

3. CD’s- Certificates of Deposit
Risk
Return
Low
Depositing money to the bank for a set time period
Insured up to $250,000 by FDIC
1 Year- 1.35%
2 Year- 1.50%
5 Year- 2.25%
Rates change with interest rates

4. Risk Return Gold/Silver Metals Moderate Can buy coins, bars or stocks
Can have high opportunity cost versus inflation- it pays nothings to hold
Hedge against inflation and high risk times

5. Bonds (Loan Money to the government or companies)
Risk
Return
Varies (must look at the bond rating)
Ratings go from AAA, AA, A, BBB, BB etc. all the way to C)- higher the rating the less risk and lower return.
Bond values can fluctuate through supply and demand and interest rates
You can always wait to the end of the mature date on treasury bonds and get the interest promised.
Corporate Bonds
Treasuries
Municipal

6. Real Estate- Buildings or Land
Risk
Return
Flipping/Rentals:
Risk Varies/Many Variables- interest rates, overall market conditions, cash flow, building/real estate skills
Personal Home Ownership:
Low if living for the long term and you keep debt/income ratio low
Since % for home ownership
Since % for rentals

7. Basics of the Stock Market

8. Risk Return Stock Market
The market that buys and sells stocks (ownership in companies)
Varies- depends on your risk tolerance and approach
Also depends on when you buy and when you sell
Historic return on stocks is 7.3%

9. General Tips on Stock Investing
Sell the Losers, Let the Winners Ride
Adopt a Long-Term Perspective
Buy Low- sell High
Understand your risk tolerance and emotions
Diversify
Buy only what you understand
Past Trends often continue
Avoid unethical businesses
Buy value, quality
Keep cash on hand
Trust low cost index funds