Savings and investments

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Savings and investments
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Reasons to save and invest

• Education
• Down payments- car, house, toys
• Business startup
• Retirement
• Emergencies

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Rule of 72

• To figure how long it will take for your
  investment to double in size divide 72 by the
  interest you are earning.
• Example 72 / 12 6 years to double

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Stocks

• More risk than Mutual funds
• More potential return than mutual funds

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Mutual funds

• Less risk than stocks
• Less potential return than stock

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Municipal bonds

• Less risk than mutual funds
• Less potential return than mutual funds

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Savings account

• Low risk
• Low return

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Strategies to get rich

• 2000 a year for 6 years
• 25 plus 10 plan

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Keys to savings and investing

• Commitment
• Discipline
• Planning
• Evaluating
• Goal setting
• Diversification