1. Brokerage Firms 401K’s, IRA’s, Mutual Funds

2. Banks vs. Brokerage Firms Brokerage Firm Specialize in accounts for stocks, bonds, mutual funds Banks Offer Checking & Savings accounts, credit cards, loans & brokerage services

3. Types of Brokerage Accounts There are many types of brokerage accounts: 401-K IRA Roth IRA 1) Retirement account: Tax deferred => no taxes until you take money out! 529 (college savings) 2) Specific Regular brokerage 3) Taxable account

4. Mutual Funds professionally managed collective investment vehicle that pools money from investors to purchase securities –Some funds can buy only stocks or only bonds –Some funds can buy a combination of investments Professional Managers Invest your money. They are paid a yearly management fee Money Pooled in a specific fund

5. Hidden Fees on Mutual Funds Funds have yearly management fees You should not pay more than.75% per year Some funds have loads (1-time fee) to buy the fund Often these “loads” are hidden from investors Do not buy any fund with a load!

6. ETF’s ETF’s = exchange traded funds Similar to mutual funds, except they trade in the form of a stock. –Fees are typically lower than mutual funds –You can trade these during any trading day (very liquid) Examples: SPY (sp500), XLK (technology), GLD (gold)

7. You will need a bank account for paying bills, depositing paychecks, etc You will need a Brokerage Account to save money in stocks, bonds, etc… Mutual funds or ETF’s can be an efficient ways to diversify your savings But be very careful!! Many have high fees that are often “hidden” Companies like Vanguard ( ) specialize in low fee mutual funds Saving Money for the Long Run

8. Retirement Gamble PBS Video 2013 PBS special on retirement investment dangers…. http://video.pbs.org/video/2365000843/?starttime=3131000 Play 19 minutes => end day 1 block period

9. Financial Literacy Bank Accounts Credit Cards Brokerage Accounts Stocks Bonds Student Loans Real Estate

10. E-Trade https://www.youtube.com/watch?v=wMTo7it50gY