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The wonderful world of investing your money

The wonderful world of investing your money. HOW IT WORKS, WHY IT WORKS AND WHEN YOU SHOULD START DOING IT!!!!!. How do you get rich?. You can be born to very wealthy parents. Get sent to the best prep schools on the East Coast. Graduate from the Wharton School of Business.

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The wonderful world of investing your money

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  1. The wonderful world of investing your money HOW IT WORKS, WHY IT WORKS AND WHEN YOU SHOULD START DOING IT!!!!!

  2. How do you get rich? • You can be born to very wealthy parents. • Get sent to the best prep schools on the East Coast. • Graduate from the Wharton School of Business. • Daddy leaves you his money when he dies.

  3. How do you get rich? • You can be born into a nice New Jersey Italian family. • Be very loyal to the “family”. • Work very hard in the family business and rise up to be the head of the Chicago Mob.

  4. How do you get rich? • Work hard on your jump shot and free throws! • Become the greatest basketball player in the world. • Sign multi million dollar endorsement deals. • Retire at age 40 to the golf course.

  5. How do you get rich? • Work really hard in the local school plays and musicals. • Become an actor and get the lead role on one of the greatest television series ever.

  6. How do you REALLY get rich? The reality of it is that people get rich by working hard, being smart with their money and INVESTING very wisely over MANY years. REMEMBER: • There is no quick and easy way to get rich! • Large amounts of money is made over time! • It is never too early to start investing your money!

  7. Investing - defined INVESTING – Putting money in for long term for purposes of earning money over time. Basically – Using the money you have to make more money. REMEMBER - We don’t do anything unless there is a chance to make profit!!!! THE QUESTION - How do we make money on our money without lifting a finger???

  8. Why invest??? • TO MAKE MONEY!!!!!

  9. THINGS TO CONSIDER WHEN CHOOSING INVESTMENTS

  10. LIQUIDITY • Liquidity: How quickly can I turn my investment into cash. • High liquidity = I can get cash immediately. • Examples: Regular savings account • Low liquidity = I cannot get my cash quickly or perhaps not at all. • Examples: Real Estate, Collectibles • Whenever TIME is part of the investment, liquidity is NOT high.

  11. risk • What are the chances I will lose some or all of my money?

  12. Yield (rate of return) • % of money earned on your savings or investment over a year.

  13. inflation • Risk that the rate of inflation will increase more than the rate of interest earned. Will my investment beat inflation?

  14. diversification • Spread your money out. Do not put all your money into one investment. • “Don’t put all your eggs in one basket!”

  15. taxes • Are there any tax benefits to this investment in terms of when I have to pay taxes? • Tax exempt: earnings you don’t have to pay taxes on.

  16. Stages in the life cycle • You will invest differently depending on where you are in your life. • Stages include: Marriage, having children, retirement etc.

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