Savings & Investment Strategies

Sydney Marshall Block 3

Savings : is the storage of money for future used.

COMPOUND INTERST

Compound Interest : interest computed on the amount saved plus the interest previously earned.

Certificate of Deposit

A certificate or deposit allows you to ear a higher interest rate than a regular savings account. It requires a minimum deposit of $100 to $1000 or more. You must leave the money on deposit for a specified period.

Money Market Account

A money market account pays a variable interest rate based on various government and corporate securities. Interest paid on money market accounts reflects the current rates of interest being paid in the money markets.

Mutual Funds Vs. Stock

Stock is ownership in a corporation. When you buy a share of stock, you become part owner of a company.

Mutual Fund is an investment fund set up and managed by companies that receive money from many investors.

Alternative Investments

Commodities Gold, Silver, Metals Currency & Financial Instruments Collectibles

INVESTMENT INTEREST

5% interest = 41,928.43 after 20 years.

8% interest = 59,773.60 after 20 years

10% interest = 76,275.75 after 20 years

LIQUIDITY

Liquidity is the ease with which an investment can be changed into cash without losing its value.

It’s important, because it could be a safer investment.

Common Vs. Preferred Stock

Common stock represents general ownership in a corporation and right to share in its profits.

Preferred stock has priority over common stock in payment of dividends.

NYSE New York Stock

Exchange - is an equity (stock) exchange located at 11 Wall Street in lower Manhattan, New York, USA). It is the largest stock exchange in the world by dollar value of its listed companies' securities.

NASDAQ

National Association of Securities Dealers Automated Quotations - is an American stock exchange. It is the largest electronic screen-based equity securities trading market in the United States. With approximately 3,800 companies, it has more trading volume per hour than any other stock exchange in the world