1. Business & Personal Finance INVESTING

2. Bonds When you buy bonds you are lending money to a federal or state agency, municipality or other issuer, like a corporation. A bond is like an IOU. The issuer promises to pay a stated rate of interest during the life of the bond and repay the entire face value of the bond when it reaches maturity. The interest a bond pays is based primarily on the credit quality of the issuer and current interest rates.

3. Types of Bonds Savings Bonds: Government issued and government backed. Treasury bonds, bills and notes: The bonds the U.S. Treasury issues are sold to pay for an array of government activities and are backed by the full faith and credit of the federal government.

4. Treasury Bonds: Securities with terms more than 10 years. Interest is paid semi-annually. Treasury Bills: Short-term securities with maturities of 3 months, 6 months or 1 year. Treasury Notes: Interest-bearing securities with maturities ranging from 2 to 10 years. Interest payments are made every 6 months.

5. Stocks Stock: Owning part of a company. Stockholder: The owner of the share(s) of stock Dividend: An income distribution by a corporation to its shareholders usually made quarterly. Stock Appreciation: An increase in the value of stock in a company, generally based on its ability to make money and pay a dividend.

6. Mutual Funds Established to invest many people’s money in many firms. A mutual fund spreads across numerous companies rather than relying on just one to perform well.

7. OTHER INVESTMENTS

8. Individual Retirement Accounts Lets you build wealth and retirement security. Grows tax free until you are ready to retire and withdraw it. IRA

9. 401 k Plans Offered by companies to their employee’s. Participants authorize a certain percentage of their before-tax salary to be deducted from their paycheck and put into a 401(k).