1. risk and return

3. Before investing your money, you will have to understand the important concept of risk and return.

4. Risk and return means that the returns you will get when investing your money will vary. You may even lose money. However, no matter what you do with your money, you are always taking some amount of risk. If you keep your money at home, you risk that it could be lost or stolen. If you place your money in a bank account, you risk that the returns that you get will not be high enough.

5. Risk and return also means that if you take greater risks, you should expect to get greater returns. If you want the possibility of getting greater returns, you need to invest your money in more risky investments, for example bonds or stocks. Different bonds and stocks even have different degrees of risk.

8. what would you invest in if you had 1000$ to invest?

9. So how much risk should you take with your money? That depends on many different factors including your

10. age…… why?

11. risk tolerance…….

12. and investment objectives.

13. SHOULD I SAVE (low risk) or invest?

15. 4 basic investment considerations: -Simplicity -Consistency/Volatility -Risk -Liquidity

16. Simplicity K.I.S.S. or “cost”

17. - volatility refers to the amount of uncertainty or risk about the size of changes in a security's value. A higher volatility means that a security's value can potentially be spread out over a larger range of values. This means that the price of the security can change dramatically over a short time period in either direction. A lower volatility means that a security's value does not fluctuate dramatically, but changes in value at a steady pace over a period of time. Read more: Volatility Definition | Investopedia http://www.investopedia.com/terms/v/volatility.asp#ixzz40 qsFXYTi Follow us: Investopedia on Facebook volatility

18. Liquidity how quickly can you get to your money liquid assets; cash. EX: Bank Savings account (high liquidity) limited by withdrawal limitations but used like cash…. EX: - CD is as safe as a bank account but earns more. In exchange, your money is locked up for the length of the CD. - bonds.