INVESTMENTS

1
INVESTMENTS

• What you need to know

2
What is the difference between saving and
investing?
3
Think of em like this

• SAVING - is something you do to meet a goal
• INVESTING - is putting your money to work for you.

4
Why is it easier for rich people stay rich than
for you to get rich?
5
RISK and REWARD

• Remember the relationship?
• A DIRECT RELATIONSHIP
• The more risk you take, the more reward you
  should get

6
THE FINANCIAL PLANNING PYRAMID
ONCE YOU HAVE YOURSELF COVERED, TAKE MORE
FINANCIAL RISKS!
HIGH RISK / HIGH REWARD
A LITTLE MORE RISK
SAFE INVESTMENTS/SAVINGS
COVER YOURSELF
7
CHOOSING AN INVESTMENT PLAN
8
What determines how you invest?

• Your willingness to take a risk
• Your financial ability to take a risk
• Your knowledge of the options

9
What do we need to make sure we have covered
before we invest?
10
Before you invest, also consider

• The history of the investment
• The safety of the principal
• The liquidity

11
Investing Terms

• Principal
• The originally invested amount
• Return on Investment (ROI)
• The percentage increase on the principal
• Portfolio
• A common term for group of investments

12
Some millionaires in the making. . .
13
Tried and Proven Ways to Invest Successfully

• Don't invest your money in anything you don't
  fully understand.
• Invest equal sums at regular intervals
• Reinvest your dividends and capital gains

14
Tried and Proven Ways to Invest Successfully

• Buy for the long term.
• Diversify your investments
• Buy low and Sell High
• Be patient, don't panic

15
YOUR INVESTMENT OPTIONS
16
Savings Accounts
17
Certificates of Deposit (CDs)
18
Bonds
19
U.S. Treasury Bills
20
Mutual Funds
21
Stocks