investing . if you invest $1,000 each year what are some ways to invest?
TRANSCRIPT
InvestingInvesting
Interest Rate 5 yrs. 10 yrs. 15 yrs. 20 yrs.5% $5,525 $12,578 $21,578 $33,0656% 5,637 13,181 23,276 36,7867% 5,751 13,816 25,129 40,9958% 5,867 14,487 27,152 45,7629% 5,985 15,193 29,361 51,160
10% 6,105 15,937 31,772 57,25711% 6,228 16,722 34,405 64,20312% 6,353 17,548 37,279 75,052
If you invest $1,000 each If you invest $1,000 each yearyear
What are some ways to What are some ways to invest?invest?
Rule of 72’sRule of 72’s
Contributions made only Contributions made only between 22 & 30 (9 years)between 22 & 30 (9 years)
$2,000 contributed each year
Total Investment of $18,000
At 9% by the age of 65
You will have $579,471
Contributions made only Contributions made only between 31 & 65 (35 between 31 & 65 (35
years)years)$2,000 contributed each year
Total investment $70,000
At 9%, by the age of 65
You will have $470,249
Individual Retirement Individual Retirement PlansPlans
Mutual FundsMutual Funds
Option One: Fixed Option One: Fixed ReturnReturn
I nvestment$
FixedRateof
Return
Value in25 years
100,000 8% 684,850
Option two: Diversified Option two: Diversified PortfolioPortfolio
I nvestment $ FixedRate ofReturn
Value in 25years
20000 Total Loss 0
20000 0% 2000020000 5% 67730
20000 10% 216690
20000 15 658380
Dollar Cost Averaging
Diversification
Investing Choices
Now What?Now What?
How does diversification help limit risk?
How does age and financial situation affect how you make investment decisions?
The Stock MarketThe Stock Market
StockStock
Market ValueMarket Value
Stock ExchangesStock Exchanges
Dow JonesDow Jones
LiquidityLiquidity
Cash
Stocks
Houses/Cars/Jewelry
DividendsDividends
$
$
How are earnings made?How are earnings made?
$
$
$
Advantages of Stock Advantages of Stock InvestmentsInvestments
$
$
DisadvantagesDisadvantages
$
$
StocksStocks
$
$ Preferred$ Common
$Blue Chip$Growth
Homework:Homework:Bring in a current issue of Bring in a current issue of
the newspaper.the newspaper.
Stock LineStock Line
BondsBonds
How Bonds workHow Bonds work
Corporate BondsCorporate Bonds
Municipal BondsMunicipal Bonds
Federal BondsFederal Bonds