SAVINGS OPTIONS YIELD RANGE IN RECENT YEARS FINANCIAL RISK INFLATION HEDGE LIQUIDITY CHECKING ACCOUNTS % Low risk if insured NoneHigh SAVINGS ACCOUNTS % Low risk if insured NoneHigh CERTIFICATES OF DEPOSIT Time Deposits % Low risk if insured None 1 week to 8 years (penalty for early withdrawal) GOV’T SAVINGS BONDS % Low risk, backed by government None Redemption results in lower yield GOV’T TREASURY BILLS, NOTES AND BONDS % Low risk, if held to maturity, backed by government None Immediate to several years

INVESTMENT OPTIONS YIELD RANGE IN RECENT YEARS FINANCIAL RISK INFLATION HEDGE LIQUIDITY STOCKS Common Preferred 0-20%5-9% Medium to High GoodHigh BONDS Municipal Corporate High Quality Junk Bonds 3-10%6-11%8-14% Low to Medium Low to Medium High None Varies, Immediate to 30 Years MUTUAL FUNDS (Money market, fund stocks, bonds) 0-16% Low to High Depends on skill of manager and fund objectives GoodHigh REAL ESTATE (Home, rental unit, commercial property) 0-20% Medium to High GoodLow COLLECTIBLES (Art, antiques, precious metals, gems) Few collections yield profits HighVaries Low to Moderate

PYRAMID OF INVESTMENT RISK