Consumer Ed Unit 8Chapter 9 Investing Saving in a way that earns income Risk what you are willing to gamble on vs Returnwhat you will get back on your money that you invested Reasons to Invest ID: 150483
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Slide1
Investing
Consumer Ed
Unit 8-Chapter 9Slide2
Investing
Saving in a way that earns income
Risk –what you are willing to gamble on
vs.
Return-what you will get back on your money that you investedSlide3
Reasons to Invest
Reach Financial Goals
Live on investments without working
To increase monetary values
For unexpected occurrencesSlide4
Safe Investments
Savings Accounts
CD’s
Money Market Accounts
BondsSlide5
Corporate Stocks
def
. is a share of ownership of a
company
Stock is created for money needed to run the business
**Ex: 100 shares of McDonald’s stock purchased for $2250 in 1965 on 1
st
offering-is worth more than $1.4
million in 1995.Slide6
Stock Market Venues
NYSE-New York Stock Exchange-major corporations are traded here on Wall Street
NASDAQ-Is where firms are listed electronically are sold –small companies use this
General Public cannot buy stocks at these two placesSlide7
Stock Purchasing
Stock Broker-is who handles the buying and selling of stock for you
Types of Stock
Common-basic stock no dividends are paid
Preferred-pays a dividend is paid Slide8
Stock Investment
Pro
Dividends
Only out the money you paid for stock
Huge potential for gains
Con
Can lose
Not a guarantee
Hard to purchase
Hard to decide on which ones
to purchaseSlide9
Mutual Fund
def. a group that manages numerous amounts of money under one heading that is chosen and monitored by the fund manager (broker)
Combination of stocks and bonds
401K programs use this option
Are broken into groups-by risk, types, and locationSlide10
Mutual Funds
Pros
Can diversify your money easily
Tax Advantage
Cons
Must have a minimum of $1000 to invest
Load-a fee to be a part of the fundSlide11
Retirement Plans
Are incomes that are used after retirement
Pension-funded by company
401 K Plans-funded by you and company
IRA-personally funded before payroll taxes
Roth IRA-personally funded after payroll taxesSlide12
Real Estate
Values in real estate fluctuate; location is key, timeframe to hold on to property
Item of value can own and then sell, can use for rental income, can live in
Slide13
Collectables
Art, collectables,
must know market and be prepared to hold for perfect moment to sellSlide14
Investing Strategies
Diversification-spread out your money in different areas
Know your limits-on risk and return
Only invest what you can bear to lose