Investing and Retirement

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Presentation transcript:

Investing and Retirement

Video 25 Minutes Investing 101

Investing? How much money is made through investments Warren Buffet $12.7 billion dollars last year or $37 million per day Bill Gates $11.5 billion last year or $33 million dollars a day Mark Zuckerberg $10.5 billion dollars last year or $30.4 million per day

Investment Words You Need to Know Diversification-The process of dividing the money a person invests between several different types of investments on order to lower risk. Investing-The process of setting money aside to increase wealth over time for long-term financial goals such as retirement. Investment-Account or arrangement a person puts his/her money for long term growth; invested money should not be used for a suggested minimum of five years. Liquidity-Quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money.

Investment Words You Need to Know Cont. Portfolio-A list of your investments. Risk-Degree of uncertainty of return on an asset; in business the likelihood of loss or reduced profit. Risk Return Ratio-Relationship of substantial reward compared to the amount of risk taken. Share-Piece of ownership in a company, mutual fund or other investment. Stocks-Securities that represent part ownership or equity in a corporation. Tax-Favored Dollars-Money that is invested, either tax differed or tax free, within a retirement plan.

Types of Investments Money Markets Single Stocks Bonds Mutual Funds IRA Roth IRA Annuities Real Estate

Stock Market What is the Stock Market? Horrible Investments NYSE, AMEX, NASDAQ, AMEX Bear vs. Bull Market Horrible Investments Gold Commodities Day Trading

Employer Benefits and Retirement Plans Employee Benefits are non-wage compensation packets. Common benefits include the following: Retirement and Savings plans Stock purchase Educational Reimbursement Incentive Plans Cafeteria Plans Retirement Loans Borrowing against your 401(k) Retirement Rollovers When changing jobs