2. Investing 101 How to grow your money wisely

3. What’s an investment? An investment is something you buy with the expectation that it will increase in value over time.

4. What are the different types of investments?

5. Real Estate Land, office buildings, houses, warehouses, rental property

6. Tangible Assets Coins, bullion, collectibles (classic cars, trading cards figurines, antiques)

7. EQUITIES STOCKS, MUTUAL FUNDS, COMMODITIES, FUTURES CONTRACTS

8. Debt Instruments Corporate Bonds, Treasury Bills, Municipal Bonds, Mortgage Securities, Personal Loans

9. All You Need to Know About Stocks! Common stock –Undivided, voting, ownership in a corporation Preferred Stock –Undivided, non-voting, ownership in a corporation, pays dividends before common stock

10. All You Need to Know About Stocks! Dividends –Profits paid to shareholders Capital Gains –Profits reinvested in the corporation which increase the value of your stock

11. All You Need to Know About Stocks! Pros –Stock Market outpaces inflation –Better rates of return in the long run over other investments Cons –Investment risk –Price Fluctuations –Difficult to time investments

12. BONDS!!!! Corporate –Balances yield with risk Junk –High yield High risk Municipal –Tax Free Treasury –Backed by the full faith and credit of The United States

13. Characteristics of Bonds Face Value –The printed value of the bond Maturity –The time at which the bond is redeemed for its face value

14. Pros and Cons of Bonds Pros- –provides current income – maintains asset value –liquidity Cons- –Inflation risk –Investment risk –Early Call

15. MUTUAL FUNDS What are they? –An investment tool which allows small investors to hold a diverse portfolio of stocks without the associated costs and time

16. MUTUAL FUNDS Where do I get them? –Brokers –Direct Sales –Internet How can I tell a good one from a bad one? –Newspaper –Financial magazines –Rates of return

17. MUTUAL FUNDS Pros –Easy to buy and sell –Easy to manage –Allows small investors the advantage of a diverse portfolio Cons –Investor has little control over mutual fund investment decisions –High rates of return in some stocks are counteracted by low rates of return on others

18. Want to Buy Some Land? Real Estate –Land Real Estate Investment Trust

19. Pros and Cons of Real Estate Pros –Easy to understand –Useful –Generally increases in value Cons –Not liquid –Relatively Expensive –Prices don’t always go up

20. Commodities Hogs, pork bellies, frozen concentrate o.j., corn, soybeans, gold, silver –Pro  High Returns –Con  Difficult to Understand, You can lose your shirt!

21. Options AND Futures Options –Certificate which allows you to purchase stock at a predetermined price Generally below market level Futures –Contracts which allow businesses to lock in prices for currencies and commodities

22. Protecting Your Investment From Uncle Sam IRA-individual retirement account ROTH IRA-after tax IRA SEP- simplified employee pension 401(k)- retirement plan with matching 403(b)- retirement plan for teachers, professors TSA- Tax Sheltered Annuity Pension- Retirement package from company