2. Investing  Saving in a way that earns income  Risk –what you are willing to gamble on vs.  Return-what you will get back on your money that you invested

3. Reasons to InvestReasons to Invest  Reach Financial Goals  Live on investments without working  To increase monetary values  For unexpected occurrences

4. Safe InvestmentsSafe Investments  Savings Accounts  CD’s  Money Market Accounts  Bonds

5. Corporate StocksCorporate Stocks def. is a share of ownership of a company Stock is created for money needed to run the business **Ex: 100 shares of McDonald’s stock purchased for $2250 in 1965 on 1 st offering-is worth more than $1.4 million in 1995.

6. Stock Market VenuesStock Market Venues  NYSE-New York Stock Exchange-major corporations are traded here on Wall Street  NASDAQ-Is where firms are listed electronically are sold – small companies use this  General Public cannot buy stocks at these two places

7. Stock PurchasingStock Purchasing  Stock Broker-is who handles the buying and selling of stock for you  Types of Stock  Common-basic stock no dividends are paid  Preferred-pays a dividend is paid

8. Stock InvestmentStock Investment  Pro  Dividends  Only out the money you paid for stock  Huge potential for gains  Con  Can lose  Not a guarantee  Hard to purchase  Hard to decide on which ones to purchase

9. Mutual FundMutual Fund  def. a group that manages numerous amounts of money under one heading that is chosen and monitored by the fund manager (broker)  Combination of stocks and bonds  401K programs use this option  Are broken into groups-by risk, types, and location

10. Mutual FundsMutual Funds  Pros  Can diversify your money easily  Tax Advantage  Cons  Must have a minimum of $1000 to invest  Load-a fee to be a part of the fund

11. Retirement PlansRetirement Plans  Are incomes that are used after retirement  Pension-funded by company  401 K Plans-funded by you and company  IRA-personally funded before payroll taxes  Roth IRA-personally funded after payroll taxes

12. Real EstateReal Estate  Values in real estate fluctuate; location is key, timeframe to hold on to property  Item of value can own and then sell, can use for rental income, can live in 

13. Collectables  Art, collectables,  must know market and be prepared to hold for perfect moment to sell

14. Investing StrategiesInvesting Strategies  Diversification-spread out your money in different areas  Know your limits-on risk and return  Only invest what you can bear to lose