1. Lesson 9.6 Starting to Invest July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved1 Introduction Investing is not just for the wealthy. The money you invest comes from the money you don’t spend Today, it is essential for everyone to be a successful investor Successful investing requires knowledge, discipline, time Successful investing is not magic

2. Lesson 9.6 Starting to Invest July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved2 Objectives Review why it is important to develop investment goals before you begin investing You should be able to do the following after completing this lesson. Explain how investment goals can be classified Discuss whether everyone should have the same investment goals Tell why time is important to successful investing List some common resources for researching investments Identify how much money you need to begin investing Describe how you should monitor your investments Define investment strategy, risk, diversification and other key terms introduced in this lesson

3. Lesson 9.6 Starting to Invest July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved3 9.6.1 – Investment Goals How to establish your investment goals Why a personal timeline may help to visualize your goals In this section, you will learn How far into the future you should set your investment goals What investment goals represents

4. Lesson 9.6 Starting to Invest July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved4 9.6.2 – Investment Strategy What an investment strategy is What makes a good investment strategy How much money you need to begin investing In this section, you will learn Why each investment goal should have a time horizon and appropriate level of risk Investment Analysis Exercise You will run the following Interactive Exercise

5. Lesson 9.6 Starting to Invest July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved5 9.6.3 – Level of Risk What risk is What an investment portfolio is What risk tolerance is In this section, you will learn The different levels of risk The correlation between risk and return for an investment What is meant by overall risk Risk tolerance is inversely proportional to one’s age

6. Lesson 9.6 Starting to Invest July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved6 9.6.4 – Researching Different Investments How to select investments The role of risk tolerance in making investment selections How much investment research is available Why it is important to understand what you invest in In this section, you will learn The amount of time and effort necessary to research investments Common sources for investment research

7. Lesson 9.6 Starting to Invest July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved7 9.6.5 – The Importance of Time How time affects your investments Time is a critical factor to successful investing In this section, you will learn Why it is important to begin investing as soon as you get a job Why it is important to only use investments as they were designed to be used

8. Lesson 9.6 Starting to Invest July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved8 9.6.6 – Initial Investment Why investing regularly is critical How much money is needed to begin investing Ways you can automate investing In this section, you will learn Why the amount you invest is not critical

9. Lesson 9.6 Starting to Invest July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved9 9.6.7 – Getting Started How many people actually invest from their home How to begin investing Why many people invest where they work In this section, you will learn The importance of deciding how much you will invest on a regular basis Banks provide many of the common investments for their customers

10. Lesson 9.6 Starting to Invest July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved10 9.6.8 – Liquidity Why part of your investment portfolio should include high liquidity investments What liquidity is In this section, you will learn The range of liquidity for common investments Why liquidity is important

11. Lesson 9.6 Starting to Invest July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved11 9.6.9 – Diversification Most investments have good and bad years What diversification is Why some investments compliment other investments In this section, you will learn The 2 distinct levels of diversification Why diversification is an important part of your investment strategy Investment Diversification Exercise You will run the following Interactive Exercise

12. Lesson 9.6 Starting to Invest July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved12 9.6.10 – Monitoring Your Investments Ways to monitor your investments Why investing is not a “spectator sport”. How often should you monitor your investments In this section, you will learn Advantages of regularly monitoring your investments Why it is easier to monitor your investments today

13. Lesson 9.6 Starting to Invest July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved13 Discussion Questions Are more people investing today than in the past and what are the most common mistakes made by investor today? Are there any investments that are too good to be true?