Investing Part 2 Introduction Slide When | Where | How

$405 monthly contributions Getting to a million dollars at age 60 Starting at Age 20 40 years of investing $405 monthly contributions Discussion question first: who already invests? Discuss the following graphs. First graph is someone who starts investing at age 20 for 40 years until they are 60. The second graph is someone who starts investing at age 30 for 30 years until they are 60. Both want to reach 1million dollars at age 60. The person who starts at age 30 will have to make double monthly contributions to reach 1 million at age 60. The best time to start investing is now! “At this point in your life you are rich in time, not money.”

$860 monthly contributions Getting to a million dollars at age 60 Starting at Age 30 30 years of investing $860 monthly contributions

When “The best time to plant a tree was 20 years ago. The second best time is now.” – Chinese Proverb Emphasize starting now

When High Debt Interest “Timing the Market” Dollar/Cost Averaging These are some strategies to think about before starting. Discussion about timing the market, and why it is disadvantageous. If you really think the market will drop and you really don’t want to invest, you should at least invest in money market securities or funds. It’s a very low return, but still higher than 0 which is your return if you don’t contribute anything because you are “timing the market” Dollar/Cost Averaging: Buying assets at a fixed priced no matter how much the asset’s price changes. You buy less of the asset when its high, and more of the asset when its low. This averages out the amount of the asset you are buying over time and is a good alternative to buying a huge amount of the asset at once if you can’t afford to spend one lump sum. High Interest or Debt – Consider your current debt interests. If it is higher than what your expected return from the market or investments, you should pay it off first. Maybe we’ll do a recap of market and expected returns. High Debt Interest

Building Wealth Retirement Child’s Education Consider your goals and what you want from investing. Ask audience what some of their goals are. This will help determine what kind of account to open and narrow down where to look/start. We can maybe talk a little about IRA’s or 529’s if we have time Goals: Retirement, Child’s Education, Building Wealth, Other

Where to start? Personal Advisor Robo-Advisor Brokerage App Once you figure out what you want, the next step is to figure out how to get there. These are some common ways to invest. Brief explanation about each one. We should talk about commissions and fees. Apps tend to target millennials and have smaller fees, and minimums. Brokerage App

Where to start? Employer 401-k, 403-b, TSP Matching Limits Things that employees might offer you Explanation of a 401-k Explain matching and matching limits Talk about having multiple accounts like an IRA and also a 401-k

Mutual Funds In the last Investing session, we talked about what mutual funds are. Now lets delve a little deeper into what you might see when looking up mutual funds and what they mean. Fund name; ntf = no transaction fee; symbol; we will cover prospectus in the next slide; rating; expense ratio

Mutual Fund Prospectus Now lets talk about the prospectus of a mutual fund. A prospectus has all the information you will need about a mutual fund

Mutual Fund Prospectus Here are the mutual funds’ top 10 investments

Mutual Fund Prospectus Lots of useful information about the fund here

Mutual Fund Prospectus The allocation of the mutual fund. Here it shows the allocation of the different industries. Some will also show you the allocation of stocks, international stocks, bonds, etc.

Mutual Fund Prospectus Historical performance of the fund

Mutual Fund Prospectus Risk and reward of the fund End of mutual funds; ask for questions before moving on to stocks

Stocks An overview of AAPL stock. What you will see when looking up stocks. Talk briefly about some important points. Maybe market cap, EPS, dividends. Maybe talk about investing for dividends as a strategy

Bonds Now we will look at bonds. Explain Qty min Explain coupons and maturity Explain how the price is quoted as a percentage of par.

Questions?