1. Investing and Consumer Fraud

2. DO IT NOW Grab a laptop, if you don’t have one already.
Go to the website for the Bureau of Consumer Protection. (Google it or find the link on my website).
What are some observations you can make about the agency?
What is the purpose of this agency?

3. INVESTING

4. INVESTING: RULE #1
Have your retirement taken out of your check. You learn to live without it.
If you contribute 6% of your $40,000 salary ($2400 per year), that will become $434,265 after 30 years in a retirement account!

5. INVESTING: RULE #2
Pay attention to interest rates: that last figure was based on a 10 percent return.
Your savings account return: .75%
Checking account: .25%
36 month CD: 1.25%
Stocks: 9.8% average rate of return
*NC State Employees Credit Union

6. The riskier the investment the more chance to make or lose money.
REMEMBER...
The riskier the investment the more chance to make or lose money.

7. INVESTING: RULE #3 DIVERSIFY Do not put your eggs in one basket!
Mutual funds are a great investment tool because they stick your money in different places.
Mutual funds: company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt- combined holdings of the mutual fund are known as its portfolio.

8. INVESTING: RULE #4
Watch the market, but don’t panic!

9. INVESTING: RULE #5
You will eventually have to pay taxes, but for right now, putting your money in retirement accounts means you are not paying income tax!
For example, put $1,000 a year in a 403b or 401K account, you pay taxes on $49,000 instead of $50,000 in income.

10. CONSUMER FRAUD

11. WHAT IS FRAUD?
Deceptive business practices that cause consumers to suffer financial or other losses.

12. CONSUMERISM
Movement to educate buyers about the purchases they make and to demand better and safer products from manufacturers

13. CONSUMER BILL OF RIGHTS
Right to a safe product (won’t harm them)
Right to be informed
Right to choose (variety of products/services)
Right to be heard
Right to redress (ability to obtain from the manufacturer adequate payment if a product causes financial/physical damage)

14. HOW DOES THE GOVERNMENT PROTECT CONSUMERS FROM FRAUD?
FTC
Attorney General (NC - Josh Stein)
Consumer Protection Agency
Better Business Bureau
Avoid Online Scams/Phone Scams and Ponzi/Pyramid Schemes
Helpful hints: Do Not Call Lists and Reading the Fine Print

15. IDENTITY THEFT PROTECTION
Don’t carry around confidential info
Don’t give out your Social Security Number
Watch your debit and credit cards carefully
Shred all personal info
Check credit reports
Resist clicking on links in s
Create strong online usernames/passwords
Opt for e-bills and e-statements