1. 5.11 Investing To Fund College Education 1.On a scale of 1 to 10, how would you rank Clear Lake as an investment whose purpose is to fund college education in 15 years? Answer. 1 is most suitable, 10 entirely unsuitable. Friday, 15 January 20161:06 AM

2. 5.22 Investing To Fund College Education 2.If you were in Bill’s situation at this point, how would you react emotionally? Would you be worried? or anxious? Or would you be patient, believing that most investments incur some glitches here and there and that you are better off having minor problems than major ones? How might you feel, if you found yourself in this situation: worried, anxious, or patient?

3. 5.33 Investing To Fund College Education 3.If you were Bill or his wife, would you begin to experience any feelings of regret? Specifically, would you feel that anyone should be blamed?

4. 5.44 Investing To Fund College Education 4.If you answered yes, whom would you blame most: yourself, James, or the situation?

5. 5.55 Investing To Fund College Education 5.Think about how the scenario has unfolded so far. At the outset, how obvious does it seem to you that it would have gone this way? That is, were any tell tale indications present? How would you answer this question on a scale of 1 to 10, where 10 is very obvious, and 1 is impossible to predict?

6. 5.66 Investing To Fund College Education 6.Put yourself in Bill’s shoes. How would you react to James proposal? You are aware that James is more knowledgeable about the real estate market than you are, but you don’t think that he would take advantage of you. He is too good a friend. However, you have now invested $27,500 in Clear Lake. Would you accept his buyout offer? Or, would you remind James this investment is to pay for your child’s education, and you still expect it to do that, thus continuing to hold your stake? (see next slide for choices)

7. 5.77 Investing To Fund College Education a.Tell James you understand that he is trying to help you and come to terms with a loss by signing your interest over to him. b.Remind James that he said that this was going to pay for your child’s college education, and you still expect it to do that (in other words, you want to keep your interest).

8. 5.88 Investing To Fund College Education 7.Imagine that six years has passed since your original investment! As in question 6, James proposes that you sign your interest over to him. This time James tells you that a real estate agent selling Clear Lake has offered to buy all lots for $35,000. Together with the $8,900 received from the sale of the lot with the model home, the total is $43,900. James has decided to accept the offer, and offers you the chance to assign your interest over for the same offer. Would this change your answer to #6? Would you now tell James you understand he is trying to help you and sign the deal? Or, would you remind James of your child’s education funding requirements and keep your interest? (see next slide for choices)

9. 5.99 Investing To Fund College Education a.Tell James you understand that he is trying to help you and sign over your interest. b.Remind James that he said that this was going to pay for your child’s college education, and you still expect it to do that (in other words, you want to keep your interest). Who was the child?

10. 5.1010 Investing To Fund College Education

11. 5.1111 Investing To Fund College Education

12. 5.1212 Investing To Fund College Education The 10 Commandments Of Investing see link for greater detail 1.Thou Shalt Set Clear GoalsThou Shalt Set Clear Goals 2.Thou Shalt Put Thy Financial House in Order 3.Thou Shalt Question AuthorityThou Shalt Question Authority 4. Thou Shalt not Follow SheepThou Shalt not Follow Sheep (Why It Pays To Be A Lazy Investor)Why It Pays To Be A Lazy Investor 5.Thou Shalt Be Humble 6.Thou Shalt Be PatientThou Shalt Be Patient 7.Thou Shalt Show Moderation 8.Thou Shalt not Ogle Thy Investment 9.Thou Shalt not Court or Spurn Risk 10.Thou Shalt not Make Heroes of Mere Men

13. 5.1313 Investing To Fund College Education The 10 Investment Commandments 1. “Save. Invest your savings in your future happiness and security and education for your kids.” 2.“Don’t speculate. If you must ‘play the market’ to satisfy an emotional itch, recognize that you are gambling on your ability to beat the pros so limit the amounts you play with to the same amounts you would gamble with the pros at Las Vegas.” 3. “Don’t do anything in investing primarily for tax reasons.” 4. “Don’t think of your home as an investment. Think of it as a place to live with your family-period.” 5. “Never do commodities….Dealing in commodities is really only price speculation.It’s not investing because there’s no economic productivity or value added.”

14. 5.1414 Investing To Fund College Education The 10 Investment Commandments 6. “Don’t be confused about stockbrokers and mutual fund salespeople. They are usually very nice people, but their job is not to make money for you. Their job is to make money from you.” 7. “Don’t invest in new or ‘interesting’ investments. They are all too often designed to be sold to investors, not to be owned by investors.” 8. “Don’t invest in bonds just because you’ve heard that bonds are conservative or for safety of either income or capital. Bond prices can fluctuate nearly as much as stock prices do, and bonds are a poor defence against the major risk of long-term investing – inflation.” 9. “Write out your long-term goals, your long-term investing program, and your estate plan – and stay with them.” 10. “Distrust your feelings. When you feel euphoric, you’re probably in for a bruising.”