Presentation on theme: "Merit Badge ID#: 11 Source: Boy Scout Requirements, #33215, revised 2004 Objective #1: Complete the Course and Merit Badge Objective #2: Actually Learn."— Presentation transcript:
Merit Badge ID#: 11 Source: Boy Scout Requirements, #33215, revised 2004 Objective #1: Complete the Course and Merit Badge Objective #2: Actually Learn the Material! This isn’t Scouting…This is LIFE !!!
2 Day 1 Assignments Assignment Schedule Day 1Prepare for Day 2 Day 2 11a1c 2a-b1b(2)2b 3a-e8a-b7a-e 4a-c8c-d 5a-c9a-e 6a-e 10a-b
3 Your Previous Assignment: Requirement 1 Do the following: A. Choose an item that your family might want to purchase that is considered a major expense. B. Write a plan that tells how your family would save money for the purchase identified in requirement 1a. Discuss the plan with your family Discuss how other family needs must be considered in this plan Bring the plan to the Pow Wow and discuss the plan with your merit badge counselor
4 Comparison Shopping Comparison shop for the item. Who is selling it for the best price? Call different stores. Study ads. Look for coupons or sales. Consider alternatives: Could you buy it used? Should you wait for a sale? Discuss your shopping strategy with your counselor.
5 Your Previous Assignment: Requirement 1 (continued) C. Develop a written shopping strategy for the purchase identified in requirement 1a. Bring this shopping strategy with you to Day 2 1. Determine the quality of the item or service (using consumer publications or rating systems). 2. Comparison shop for the item. Find out where you can buy the item for the best price. (Provide prices from at least two different price sources.) Call around; study ads. Look for a sale or discount coupon. Consider alternatives. Can you buy the item used? Should you wait for a sale?
6 Requirement #2a This assignment takes 13 weeks—start today a.Prepare a budget reflecting your expected income, expenses, and savings. Track your actual income, expenses, and savings for 13 consecutive weeks. You may use the forms provided in the merit badge pamphlet, devise your own, or use a computer generated version from the website. When complete, present the results to your merit badge counselor.
7 Budgeting (continued) What is a Budget? It’s the process of making sure your resources are being used for the things that matter most to you—your personal goals A budget is a star to set your sights by, not a stick to beat yourself with. It’s an important tool While a budget is easy to understand, it takes discipline to follow. It is probably the most important single factor in helping you to attain your personal goals.
8 Budgeting (continued) There are different methods to track expenditures: Checks and credit cards These expenditures leave a paper trail Cash Record expenditures in a notebook Computer programs, i.e., Quicken, Money or spreadsheets These are very useful, especially if tied to bank and credit card companies Generate a monthly record of spending and income
9 Budgeting (continued) What is in a budget? All cash inflows and outflows Income: Money coming in, from work, savings, parents Expenses: Two types Fixed These are expenses that do not change each month, i.e. non-discretionary Variable These are expenses that can change, i.e. discretionary
10 Budgeting: The Old Way Available for Savings Personal Goals IncomeExpenses
11 Budgeting: The Right Way Income Expenses Personal Goals Other Savings Pay Yourself
12 The Right Way (continued) After paying your tithing of a percent to the Lord, you pay yourself a predetermined amount directly into savings. That leaves you a balance of your income to budget for taxes, food, clothing, shelter, transportation, etc. It is amazing to me that so many people work all of their lives for the grocer, the landlord, the power company, the automobile salesman, and the bank, and yet think so little of their own efforts that they pay themselves nothing. L. Tom Perry, “Becoming Self-Reliant,” Ensign, Nov. 1991, 64
13 Your Personal Budget Prepare a personal budget for 3 months. Put money into savings before spending it on anything else. Keep track of everything you buy. Balance your income (money you receive) with your savings and expenses (things you spend money on). See packet for budget
14 2b. Report to Your Counselor After the 3 months, share your budget with your counselor. Explain how you determined how much you saved, what you spent money on, and what was left over. Did you spend more or less than you budgeted?
15 Assignment 3 Discuss with your merit badge counselor FIVE of the following concepts: A. What emotions do you feel when you receive money? What does it make you feel like? Does it vary, depending on how much money you receive?
16 Assignment 3 (continued) B. How does the amount of money you have with you (in your pockets) affect your spending habits? If you have money in your pocket, are you more likely to spend it or save it? If you are more likely to spend it, what does this indicate about money you have in your pockets? If you want to save money, should you keep it with you or not?
17 Assignment 3 (continued) C. What are your thoughts when you buy something new and your thoughts about the same item three months later? Are they the same? What is buyer's remorse? Buyer’s remorse is when you buy a product for a certain reason, and then afterwards realize that it did not fulfill that reason Often we buy things we think will satisfy us, and then after we have owned it for a while, realize that it did not fulfill those needs How can you guard against buyers remorse?
18 Assignment 3 (continued) D. How does hunger affect you when shopping for food items (snacks, groceries)? If you are hungry, will you buy more food? Will you buy more junk food? If hunger affects what you purchase, should you eat well before shopping?
19 Assignment 3 (continued) E. Share an experience of an item you have purchased after seeing or hearing advertisements for it. Did the item work as well as advertised? What did you do when it didn’t work as advertised? Should we take things back that don’t work? Is that the correct thing to do?
20 Assignment 3 (continued) F. What happens when you put money into a savings account? Is it safe? What does the bank do with the money? What is the difference between interest you earn and interest you pay?
21 Assignment 3 (continued) G. What is charitable giving? Explain its purpose and your thoughts about it. Charitable giving is sharing the things we have received with others God gives to us freely. We should share with others
22 Assignment 3 (continued) H. What you can do to better manage your money? Ideas include: Be more careful with your spending Plan your spending and live your plan Live within your means Be smart--Earn interest—don’t pay interest.
23 Requirement 4 Explain the following to your merit badge counselor: A. What is the difference between saving and investing? Why would you use one over the other? Saving: to put money aside, usually in a bank account for future use The return you earn is generally very low but certain Investing: to invest money to make even more money in the future The return is generally higher but uncertain Generally you save for short-term goals, and invest for long-term goals
24 Requirement 4 (continued) B. What is return on investment? Return on investment is the money received from investing divided by the amount of money invested. What is risk? Risk can be many things, but generally relates to uncertainty. The less certain a return, generally the higher the risk
25 Requirement 4 (continued) C. What is the difference between simple interest and compound interest? How do these affected the results of your investment exercise? Simple interest is interest on principle only. You invest $1,000 for 1 year at 10% interest and you will have $100 at year end. At the end of 10 years you will have $1,100 or $100 interest each year * 10 years + 1,000 principle.
Requirement 4 (Continued) 26 Total Cost (Monthly Payments) = (P) (N) ( (i/12)(1+i/12) N (1+i/12) N - 1 ) Total Cost = Total Cost (Bi-monthly Payments) = (P) (N) ( (i/24)(1+i/24) N (1+i/12) N - 1 ) Total Cost =
27 Requirement 4 (continued) Compound interest is interest on interest. You invest $1,000 at 8% interest compounded monthly will earn 1,083 in 1 year In 10 years, your investment will have increased to $2,220, nearly double the simple interest method Compound interest is a very important part of investing
Requirement 4 (Continued) 28
Requirement 4 (Continued) 29
30 Requirement 5 Select five publicly traded stocks from the business section of the newspaper. Explain to your merit badge counselor the importance of the following information for each stock: Current price How much the price changed from the previous day The 52-week high and the 52-week low prices
31 From the Wall Street Journal
32 From the Wall Street Journal Google IPO = $100
33 From the Wall Street Journal Google Last Sale $ Change Net / % % Best Bid / Ask N/A / N/A 1y Target Est: $ y Target Est: Today's High / Low $ / $ Share Volume 2,739, Day Avg. Daily Volume 6,436, Day Avg. Daily Volume Previous Close $ Wk High / Low $ / $ 437 Shares Outstanding 232,901,000 Shares Outstanding Market Value $ 157,604,106,700 Market Value P/E Ratio Forward P/E (1yr) Forward P/E (1yr) Earnings Per Share $ Earnings Per Share Official Open Price: $ 670 Official Open Price:
34 Requirement 6 Pretend you have $1,000 to save, invest, and help prepare yourself for the future. Explain to your merit badge counselor the advantages or disadvantages of saving or investing in each of the following: Common stocks Mutual funds Life insurance A certificate of deposit (CD) A savings account or U.S. savings bond
35 Requirement 6 (continued) What are common stocks? Stocks are pieces of ownership in a listed company Advantages Higher returns over the long-term Disadvantages Higher risk
36 Requirement 6 (continued) What are mutual funds? Mutual funds are portfolios of securities (stocks, bonds, or cash) managed by an investment company Advantages Professionally run Immediate diversification Disadvantages No control over taxes May not outperform benchmarks
37 Requirement 6 (continued) What is life insurance? Life insurance is a contract that will pay money to your beneficiaries should you die Advantages Life insurance payments are tax-free Cash value life insurance grows tax-free Disadvantages Cash value life insurance is very expensive You have to die to get paid
38 Requirement 6 (continued) What are Certificates of Deposit (CDs)? CDs are savings accounts held with a financial institution for a specific time Advantages Returns are higher than savings accounts Returns are guaranteed Disadvantages Returns are lower than other instruments
39 Requirement 6 (continued) What are U.S. Savings bonds? U.S. Savings Bonds are bonds issued by the US government Advantages Returns are higher than general savings accounts Returns are tax-free if used for education Disadvantages Returns are lower than other instruments
40 Day 1 Assignments We should have completed the following assignments for Day 1: Day 1Prepare for Day 2 Day 2 2a1a1c 3a-e1b2b 4a-c7a-e 5a-c8a-d 6a-e9a-e 10a-b
41 Preparation for Day 2— To do this next week Requirement 1 Do the following: A. Choose an item that your family might want to purchase that is considered a major expense. B. Write a plan that tells how your family would save money for the purchase identified in requirement 1a. Discuss the plan with your family Discuss how other family needs must be considered in this plan. Be prepared to discuss the plan with your merit badge counselor when you return
42 Preparation for Day 2 (continued) C. Develop a written shopping strategy for the purchase identified in requirement 1a. 1. Determine the quality of the item or service (using consumer publications or rating systems). 2. Comparison shop for the item. Find out where you can buy the item for the best price. (Provide prices from at least two different price sources.) Call around; study ads. Look for a sale or discount coupon. Consider alternatives. Can you buy the item used? Should you wait for a sale?
43 Preparation for Day 2 (continued) Requirement 8 Demonstrate to your merit badge counselor your understanding of time management by doing the following: A. Write a "to do" list of tasks or activities, such as homework assignments, chores, and personal projects, that must be done in the coming week. List these in order of importance to you. What is a “to do” list? Why must you prioritize this list?
44 Preparation for Day 2 (continued) B. Make a seven-day calendar or schedule. Put in your set activities, such as school classes, sports practices or games, jobs or chores, and/or Scout or church or club meetings, then plan when you will do all the tasks from your "to do" list between your set activities. Why is a calendar important? Why is planning so important? What is meant by the statement: “Those who fail to plan, plan to fail.”
45 Preparation for Day 2 (continued) C. Follow the one-week schedule you planned. Keep a daily diary or journal during each of the seven days of this week's activities, writing down when you completed each of the tasks on your "to do" list compared to when you scheduled them. D. Review your "to do" list, one-week schedule, and diary/journal to understand when your schedule worked and when it did not work. With your merit badge counselor, prepare to discuss what you learned from this requirement and what you might do differently the next time when you get together in two weeks.
46 Additional Information Investing Tools: the investment hourglass It is a way of helping remember that investing is a means to help us achieve our goals—it is not an end in itself And since our goals are based on our values, our investments should reflect those values
47 Before you Invest: The Hourglass Top 4. Know your personal goals, budget, and have an investment plan If you can answer these affirmatively, you are ready to invest ! 3. Be out of credit card and consumer debt 2. Have adequate life and health insurance 1. Have your priorities in order
48 Taxable Assets Retirement Assets 1. Basics: Emergency Fund and Food Storage 2. Core: Broad Market Exposure: Core Mutual Funds 3. Diversify: Broaden and Deepen your Asset Classes 4. Opportunistic: Individual Stocks and Sector Funds The Hourglass Bottom (continued)
Welcome to the Personal Management Merit Badge Day 2 Objective of this Presentation: To help you pass off as many of the requirements as you can during the Pow Wow Requirement are from BSA Advancement ID#: 11 Source: Boy Scout Requirements, #33215, revised 2004
Day 1 Assignments Assignment Schedule Day 1Prepare for Day 2 Day 2 11a1c 2a-b1b(2)2b 3a-e8a-b7a-e 4a-c8c-d 5a-c9a-e 6a-e 10a-b
Requirement #2a This assignment takes 13 weeks—start today a.Prepare a budget reflecting your expected income, expenses, and savings. Track your actual income, expenses, and savings for 13 consecutive weeks. You may use the forms provided in the merit badge pamphlet, devise your own, or use a computer generated version from the website. When complete, present the results to your merit badge counselor.
Your Previous Assignment: Requirement 8 Requirement 8 Demonstrate to your merit badge counselor your understanding of time management by doing the following over this next week: A. Write a "to do" list of tasks or activities, such as homework assignments, chores, and personal projects, that must be done in the coming week. List these in order of importance to you. What is a “to do” list? Why must you prioritize this list?
Your Previous Assignment: Requirement 8 (continued) B. Make a seven-day calendar or schedule. Put in your set activities, such as school classes, sports practices or games, jobs or chores, and/or Scout or church or club meetings, then plan when you will do all the tasks from your "to do" list between your set activities. Why is a calendar important? Why is planning so important? What is meant by the statement: “Those who fail to plan, plan to fail.”
Your Previous Assignment: Requirement 8 (continued) C. Follow the one-week schedule you planned. Keep a daily diary or journal during each of the seven days of this week's activities, writing down when you completed each of the tasks on your "to do" list compared to when you scheduled them. D. Review your "to do" list, one-week schedule, and diary/journal to understand when your schedule worked and when it did not work. Now discuss what you learned from this requirement and what you might do differently the next time.
Requirement 2 – To be completed in 13 weeks with your Counselor A. Prepare a budget reflecting your expected income (allowance, gifts, wages), expenses, and savings. Track your actual income, expenses, and savings for 13 consecutive weeks B. Compare expected income with expected expenses. If expenses exceed income, determine steps to balance your budget. If income exceeds expenses, state how you would use the excess money (new goal, savings).
Requirement 7 7. Explain the following: What is a loan? A loan is an agreement to borrow money and to repay a specific amount of money (principle and interest) each period. It is also called credit What is interest? Interest is rent paid to borrow money. You should earn interest and not pay it. Someone said: Interest: them’s that understands it, earn it; and thems that don’t, pay it
Requirement 7 (continued) How does the annual percentage rate (APR) measure the true cost of a loan? The APR reflects the true percentage rate of a loan. It takes into account various fees and other costs over a year. The APR is always higher than the simple interest rate on a loan. Before you borrow: Ask what the total cost of the loan will be in dollars and cents. Find out the amount of all fees – they add up quickly. Don’t always choose the loan with the lowest payment. A lower payment may mean a longer repayment period and you will pay more in total interest charges.
Requirement 7 (continued) B. What are the different ways to borrow money? Money can be borrowed many different ways. From cheapest to more expensive, it is: Loans from family and parents Loans from Credit Unions and S&Ls Loans from banks Credit cards In-store financing Payday lenders Generally, the worse your credit the more you will pay to get a loan
Requirement 7 (continued) C. Explain the differences between a charge card, debit card, and credit card What are the costs and pitfalls of using these financial tools? They are expensive and charge very high interest rates (>20%) They obligate future earnings to payments They encourage consumption, not saving Why it is unwise to make only the minimum payment on your credit card? Companies want you to pay only the minimum balance as it will take you years to pay off the card and they will charge thousands in interest costs
Requirement 7 (continued) What is a Charge card? A charge card is a credit card typically is restricted to purchases from a particular company, like a department store or a gasoline company. Most charge cards are like a credit card in that you don’t have to pay off all of your charges, or your entire balance, at one time.
Requirement 7 (continued) What is a Debit card? A debit card is a credit card that works like a check. The amount is electronically deducted (debited) from your checking account and paid into the store’s bank account. What is a Credit card? A credit card is a card issued by a bank and can be used to pay for any product as long as the seller accepts the card.
Requirement 7 (Continued) 62
Requirement 7 (continued) 63
Requirement 7 (continued) D. What are credit reports and how does personal responsibility affect your credit report? Credit reports are reports of information collected by credit bureaus from subscribers, creditors, public court records, and the consumer Why are credit reports important? Credit reports help financial institutions determine if you will likely pay back a loan. If your credit report is good, there is a much higher likelihood that you will pay back a loan and hence, more likely a financial institution will lend you money
Requirement 7 (continued) E. What are some ways to eliminate debt? The best is don’t go into debt in the first place Pay off your highest cost debt first Pay more than the minimum amount—as much as you can Consider plastic surgery (cutting up your credit cards) if you can’t stop using your cards
Requirement 9 Prepare a written project plan demonstrating the steps below, including the desired outcome. This is a project on paper, not a real-life project. Examples: Planning a camping trip Developing a community service project or a school or religious event Creating an annual patrol plan with additional activities not already included in the troop annual plan Other ideas that may be interesting to you
Requirement 9 (continued) Discuss your written project plan with your merit badge counselor. A. Define the project. What is your goal? B. Develop a timeline for your project that shows the steps you must take from beginning to completion. C. Describe your project. D. Develop a list of resources. Identify how these resources will help you achieve your goal. E. If necessary, develop a budget for your project.
Requirement 10 Do the following: Choose a career you might want to enter after high school or college graduation. Research the limitations of your anticipated career and discuss with your merit badge counselor what you have learned about qualifications such as education, skills, and experience.
Step 1 Choose a realistic job based on your age and skills (fast-food restaurant, movie theatre, yard work) Determine how many hours you would work per week Determine how much you would make per hour
Step 2 Make a list of all basic monthly living expenses: food, clothes, rent, transportation, telephone, etc. Ask family or friends, or call sources for help.
Step 3 Compare projected income with projected expenses Would you have enough income to live on? Any left for fun? Savings?
Step 4 If expenses are higher than income, could you reduce expenses or work more hours? Could you get a higher paying job? What skills would you need to get a higher paying job? Can education help you get those skills?
Discuss your final plan with your Counselor to pass this requirement off GOOD LUCK Troop 780 !!!
Optional Material on Investing Following is optional material that may be helpful if you have additional time.
Material on Investing Unlike savings in a bank account, investing implies there is a risk. There is no guarantee that you will get your money back, or that you will earn a higher return. Because of these greater risks, investors have a chance to earn higher returns (increase in value) than they would from a savings account, especially over a long period of time.
Investing (continued) The Two Basic Methods of Investing Financial Investments take two basic forms - owned investments or loaned investments. That is, you are either a lender or an owner.
Investing: Owned Investments An owned investment means you actually own part or all of a company, real estate, or other asset (an asset is an item of value) You own the asset just as you own a bike or your family owns a car Common types of owned investments are: Stock in companies Mutual Fund shares Real Estate A personal business Gold, silver, or diamonds Stamps, paintings, or baseball cards
Investing: Loaned Investment A loaned investment means you loan money to someone in return for its promise to repay the principal (the amount you loaned) plus interest Notice this investment is risky because there is only a promise to repay the money, not a guarantee Common types of loaned investments are: Money market funds Certificates of deposits U.S. government bonds Corporate and municipal bonds Annuities
Investing (continued) The Payoff? What’s the payoff for doing all this saving and investing? Why not spend all the money now? The reason is that saving and investing can do something special that earning money from a job cannot do - the money itself can earn money! Compound interest can earn interest on interest!
Investing (continued) How do you measure Investment Performance? The three typical measures of investment performance are yield, profit and total return. 1. Yield – an investment’s yield is what the investment pays you directly in income – this might be in the form of interest (bonds), dividends (stock) or rental income (real estate) 2. Profit – the money made from selling an investment for more money than you paid for it – perhaps you paid $10 for a baseball card and sold it for $15, the $5 you made on the sale if your profit
Investing (continued) 3. Total Return – the combination of an investment’s income and its increase or decrease in value since purchased – this tells the investor how much the investment actually made in dollars over the entire time the investor owned the asset
Investing (continued) Common Types of Investments To help you understand investments, let’s review some of the basic features of some common types of investments
Investing (continued) Bank Savings Account A savings account is not unlike a piggy bank you might have kept at home. It is where you save money for a rainy day or for one of your goals. It is smart to have a savings once you begin earning or receiving money. There are many benefits to keeping your money at a bank rather than at home. A few of these reasons are: Money kept at a bank is insured by the federal government against loss or theft A fire or other natural disaster could destroy your money at home The bank will pay you money, called interest, on the money you deposit in a savings account
Investing (continued) Certificates of Deposit Certificates of deposit, sometimes called time deposits, are issued by banks and are loaned investments. The investor lends the bank a specific amount of money for a specified period of time at a specific interest rate. In general, the longer the period of time, the higher the interest rate.
Investing (continued) U.S. Savings Bond You might already own a U.S. Savings Bond. These make popular gifts for families, grandparents, or others to buy for children. Basically, savings bonds are a loan to the federal government. The government agrees to repay the bondholder the amount invested, with interest, after a set period of time. Governments or companies issue bonds to raise money for certain projects, such as building roads or factories, or for general purposes.
Investing (continued) Shares of Stock Buying stock is an owned investment, you pay for stock in a company and own a portion of the company. There are probably thousands of other people who also own stock in the company, so your ownership in the company is equal to the percentage of stock you own. It is easy to invest in stocks, even for a teenager, although you must be at least age 18 or set up a special custodial account with your parents or guardian. Since stocks are one of the most risky investments, you must be careful when buying stocks.
Investing (continued) Shares in a Mutual Fund Mutual funds are a good way to diversify your investments. A mutual fund is a company that receives money from investors and then invests that money in stocks, bonds, and other types of assets. Any interest, dividends, or profits the fund earns are passed back to the investors, according to the number of shares they own, minus a small percentage that funds keep to pay its operating expenses and earn a profit. A mutual fund is able to reduce risk because, by pooling money from shareholders, it can invest in many different types of investments.
Investing (continued) Real Estate Real estate is an owned investment Common types of owned real estate include land, homes, farms, and office buildings A good way to purchase real estate without all the problems associated with owing property is to purchase a REIT, a real estate investment trust, which is like a mutual fund of investment properties
Managing Risk How do you manage risk in your life? 1.Avoid it. To avoid the potential risks of driving a car, for example, you might take the bus. 2.Reduce it. Taking a driver’s education course and wearing a seat belt reduce the chances of serious injury from an accident. 3.Retain it. You pay out of your own pocket for any loss or damage. If you have an old car, you can eliminate collision insurance, and pay to have the car repaired if in an accident. People usually do this with less expensive items.
5 Ways to Manage Risk 4.Transfer it. When people can’t avoid, reduce, or pay for financial loss themselves, they can transfer the financial risk to someone else. This is typically done through the use of insurance product. 5.Share it. When people own a business, they might want to limit the amount they could lose if the business failed. They might do this by taking on a partner or turning into a corporation.
Types of Insurance 1.Automobile insurance. Auto insurance generally will pay for damage to your car and to other cars involved if the accident is your fault. Insurance also usually covers medical payments if you or others are injured. Once you can legally drive it is the law to have automobile insurance. 2.Property insurance. Renter’s insurance pays for the replacement of personal possessions damaged or destroyed in, or stolen from, an apartment or rented home. Once you rent and eventually own a home it is good to have property insurance.
Types of Insurance (continued) 3.Medical insurance. Medical Care is expensive. Health insurance can cover most of the cost, especially major bills that could be financially devastating to an individual or a family. People of all ages are at risk of becoming ill or injured. It would be good to have medical insurance to pay for these unexpected costs. 4.Disability insurance. If you’re disabled by an accident or illness, you might not be able to continue working, and your income would stop. Disability insurance would replace most, but not all, of the income you would lose if you were unable to work.
Types of Insurance (continued) 5.Liability insurance. Personal responsibility-being responsible for yourself- carries some risk with it. For example, if you don’t shovel the snow from your sidewalk and someone slips on it, that person might sue you for the medicals costs of his or her injuries. Liability insurance pays for those costs if you are found to be legally responsible. 6.Life Insurance. Life insurance pays a specific sum of money to selected people (beneficiaries) when the person who is insured dies.
Types of Insurance (continued) Term Life Insurance. You buy coverage for only a certain term, or period of time. If you renew the insurance at the end of that time, you pay higher annual premiums because you are older and chances are higher that you may die. Although, term is the least expensive type of life insurance.
Types of Insurance (continued) Permanent Life Insurance. It is just like term insurance, but part of the annual premium is invested in a “cash value” account where the money can grow free of current taxes. The annual premiums initially are more expensive than the premiums of term insurance, however, the premiums may be guaranteed never to go up for as long as you live.