1. Investing

2. Investing putting your money to work to earn more money putting your money to work to earn more money

3. Choosing the Best Investment Liquidity: how easily in can become cash Liquidity: how easily in can become cash Safety: FDIC insured Safety: FDIC insured Return Return

4. The Three Rules of Investing 1. Start Early. 1. Start Early. 2. Diversify. (in terms of risk) 2. Diversify. (in terms of risk) 3. Buy and Hold. 3. Buy and Hold.

5. Investment Strategies Diversification: variety in your investments Diversification: variety in your investments

6. Types of Investments Stocks: ownership shares in a corporation Stocks: ownership shares in a corporation Bonds: loans investors make to corporations/ government Bonds: loans investors make to corporations/ government Cash: CDs, bank accounts Cash: CDs, bank accounts

7. Risk vs. Reward Low-risk investment: government bonds Low-risk investment: government bonds High risk: stock in new company High risk: stock in new company

8. Make a risk pyramid!!!!! Make a risk pyramid!!!!!

11. Most Americans Invest In….. Mutual Funds Mutual Funds

12. Tax Deferred Investing IRAs IRAs 401 (k)s 401 (k)s –Penalty –A cap