InvestingInvesting

InvestingInvesting putting your putting your money to work to money to work to earn more moneyearn more money

Choosing the Best Choosing the Best InvestmentInvestment

Liquidity: how easily in Liquidity: how easily in can become cashcan become cash

Safety: FDIC insuredSafety: FDIC insured ReturnReturn

The Three Rules of InvestingThe 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.

Investment Investment StrategiesStrategies

Diversification: variety in Diversification: variety in your investmentsyour investments

Types of InvestmentsTypes of Investments

Stocks: ownership shares Stocks: ownership shares in a corporationin a corporation

Bonds: loans investors Bonds: loans investors make to corporations/ make to corporations/ government government

Cash: CDs, bank accountsCash: CDs, bank accounts

Risk vs. RewardRisk vs. Reward Low-risk investment: Low-risk investment: government bondsgovernment bonds

High risk: stock in new High risk: stock in new companycompany

Make a risk pyramid!!!!!Make a risk pyramid!!!!!

Most Americans Invest In…..Most Americans Invest In…..

Mutual FundsMutual Funds

Tax Deferred InvestingTax Deferred Investing

IRAsIRAs401 (k)s401 (k)s

–PenaltyPenalty–A capA cap