Investing  

If you invest $1,000 each year

What are some ways to invest?      

Rule of 72’s 

Contributions made only between 22 & 30 (9 years)  $2,000 contributed each year  Total Investment of $18,000  At 9% by the age of 65  You will have $579,471

Contributions made only between 31 & 65 (35 years)  $2,000 contributed each year  Total investment $70,000  At 9%, by the age of 65  You will have $470,249

Individual Retirement Plans          

Mutual Funds   

Option One: Fixed Return

Option two: Diversified Portfolio

Dollar Cost Averaging  Diversification  Investing Choices

Now What?  How does diversification help limit risk?  How does age and financial situation affect how you make investment decisions?

The Stock Market

Stock

Market Value

Stock Exchanges        

Dow Jones

Liquidity   Cash  Stocks  Houses/Cars/Jewelry

Dividends $ $ $ $

How are earnings made? $ $ $

Advantages of Stock Investments $ $ $ $

Disadvantages $ $ $ $

Stocks $ $Preferred $Common $Blue Chip $Growth

Homework: Bring in a current issue of the newspaper.

Stock Line

Bonds 

How Bonds work        

Corporate Bonds      

Municipal Bonds    

Federal Bonds      