1. Excerpts from: Kiplinger’s Invest Your Way To Wealth 5 Keys to Investing Success

2. #1 Make Investing a Habit Create a plan that suits you Start small, increase as your income grows Take taxes and commissions into account

3. #2 Set Exciting Goals “Financial security”; “comfortable retirement” May struggle to maintain interest VS. “Million dollar net worth” or “condo on a golf course” Know where your money is Goals should affect investment choices Ability to take risks Age Job security Short term- avoid the market Long term- tax- sheltered plans and reassess assets

4. #3 Don’t take Unnecessary Risks Risk can be losing money OR inflation Pyramid of Risk The bigger the promised reward the bigger the risk Stocks- decline in price or in bond rates Bonds- downgrade from rating agency or in IR Real Estate values, Inflation and taxes Young vs. Old

5. #4 Keep time on your side See Handout House?, Insurance Policies, Checking and CD’s Mutual funds, stocks, bonds, investment real estate penny stocks, futures/options, junk bonds Gambling

6. #5 Diversify!!!!! One thing goes down, one goes up Spreading the risk Fixed mix 40-40-20 Core portfolio Within investment categories According to time horizons