1. Saving and Investing on a Shoestring: Investing With Small Dollar Amounts Debra Pankow, Ph.D., family economics specialist, and Marina Serdiouk, graduate student

2. Types of Investments Tax-deferred employer retirement plans IRAs (individual retirement accounts) Stocks Fixed-income investments UITs (unit investment trusts) Mutual funds

3. Tax-deferred Employer Retirement Plans Federal tax write-off for amount contributed Tax-deferred growth of principal and investment earnings Automatic payroll deductions

4. Individual Retirement Plans (IRAs) Tax-deferred growth of principal and investment earnings Traditional IRA Roth IRA

5. Dividend Reinvestment Plan (DRIP) Investment clubs Online investing Stockbrokers No-load stocks Buying stocks without a broker Stocks

6. Fixed-income Investment “Loanership” investment Treasury securities: Treasury bills, notes and bonds require $1,000 minimum investment Exempt from state and local income tax and subject to interest rate risk Purchased through a Federal Reserve Bank, financial institution or broker Other types: municipal, corporate and zero-coupon bonds

7. Ratings Service

8. Unit Investment Trusts (UITs) Long-term investment Minimum investment is $1,000 Less expensive way to purchase bonds Purchased through a broker Interest income may be taxable

9. Mutual Funds Minimum investments as low as $50 a month Fees vary Purchased through broker or direct from company

10. Other Suggestions Self-employment plan Automatic monthly investments Dollar cost averaging Never too late to start!

11. You can do it!