1. STAGES OF INVESTING HOW YOUR INVESTMENT NEEDS AND STRATEGIES WILL CHANGE OVER TIME Investing

2. Stage 1:Put and Take Account Emergency fund Pay for short-term needs Have enough left over for unexpected expenses such as….. 3-6 months net pay in an interest bearing account

3. Stage 2:Beginning Investing Goal is to earn money with money “Excess” savings beyond what is needed for daily expenses and emergencies Early investing should be conservative, low risk Begin in your late 20’s and early 30’s

4. Stage 3:Systematic Investing Investing on a regular and planned basis Increasing amounts as income grows Investing for a financially secure future Begins in your late 30’s and 40’s when earning potential is the highest

5. Stage 4:Strategic Investing Careful management of investment alternative to maximize growth of your portfolio (collection of investments) Diversification spreads risk across portfolio by having a mix of investments types

6. Stage 5:Speculative Investing Excess money to take larger risks Maximize return in the short-term The greater the risk, the greater potential return (or loss)  Be prepared to lose entire investment  Chances of “hitting it big” are slim