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Saving and investing strategies help individuals achieve …….? Personal financial goals

Saving and investing strategies help individuals achieve …….? Personal financial goals. These are the 4 keys to …. 1--Debt Free 2--In control of your expenses ( income > expenses) 3--increasing your savings/assets/net worth on a monthly basis

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Saving and investing strategies help individuals achieve …….? Personal financial goals

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  1. Saving and investing strategies help individuals achieve …….? Personal financial goals

  2. These are the 4 keys to … 1--Debt Free 2--In control of your expenses (income > expenses) 3--increasing your savings/assets/net worth on a monthly basis 4--Not being forced to work at a job you dislike just to pay the bills Financial security

  3. individual puts money into account; bank may provide interest payments on a 30 day cycle • Information is tracked in the “passbook” – a register of deposits and withdrawals • This is….(need the FULL name) • Passbook savings accounts

  4. Deposit account offered by a bank, which invests in government and corporate securities/stocks and pays the depositor interest based on the current interest rate • Typically: high rate of interest, but also high level of investment than normal savings • This is….. • Money Market

  5. Money deposit at a financial institution that cannot be withdrawn for a certain “term” – or period of time • This is a …… • Certificate of Deposit

  6. CD vs. Savings : which has the higher return? • CD • CD vs. Money Market: which is better for emergencies? • Money Market

  7. As soon as you deposit funds into ……?…., you become a partial owner and participate in the union's profitability. • Credit Union • What is an advantage to being a member of a credit union? • Better interest rates

  8. Unlike banks that are open to anyone, laws require credit unions to have a defined • field of membership

  9. What’s the difference between a Savings account and a Checking (Debit) Account? Emergency withdrawals vs. daily expenses What organization insures your bank deposits? FDIC full name of FDIC? Federal Deposit Insurance Corporation

  10. Besides selling a stock at higher price than what you bought it for, how can you increase your income with stocks? • Dividends • The purchase of stocks is only available through….. • Brokerage firm

  11. When you purchase a ___?____, you are lending money to a governmentor a corporation Bond

  12. Stock vs. Bonds…..which represents ownership ? Stock Stock vs. Bonds…..which has less risk? Why? Bonds – you are guaranteed to get your principle plus interest….with stocks, you can lose everything Stock vs. Bonds….which offers higher return? Explain Stocks – the potential is unlimited….the return on a bonds is fixed

  13. A bond’s “date of maturity” refers to ….. – when the principal amount is due When you buy a bond from a company – are you the lender or the borrower ? What are the three types of investment you purchase from the US Treasury? • Treasury………. • Treasury…….. • Treasury……… Bills , Notes , Bonds

  14. What is the main difference among the Bills, Notes, and Bonds? • Length of term Which one has the longest term? And how long? Bonds – 30 yrs issued by states, cities, counties and other governmental entities, which use the money to build schools, highways, hospitals, sewer systems, and many other projects for the public good. This is ….. Municipal bond

  15. One main advantage of a municipal bond vs. other government bonds? • No taxes on the interest income • debt obligations, or IOUs, issued by private and public corporations are called….. • Corporate bonds • Corporate vs. Govt. bonds….which has more risk? And why? • Corporate…..more of a chance for corporations to default than for governments

  16. Based on risk factor, which would you expect to offer a better return : corporate or govt. bond? • Corporate bonds • A risk management technique that mixes a wide variety of investments within a portfolio. • diversification

  17. – offered through brokerage firm which invests contribution along with the contributions of other people = ability to purchase more expensive or larger shares of stocks. This is a….. • Mutual fund

  18. often run through insurance companies; you provide funds up front; those funds are invested over time; at a certain date, you begin to receive fixed payment over time with an established termination date…..this is…. • annuity

  19. is a retirement savings plan sponsored by a publicly owned, non-profit employer… • 403b • A key advantage to 403 b and 401 k are that the employer will often…… • Match the contribution up to a certain percent

  20. A general rule for investors is that the older you get,,,your investment choices should be ….. • More conservative…less risk

  21. $1000 x 10% = $100 • $1000 x 10% = $100 • $1000 x 10% = $100 • $1000 x 10% = $100 • $1000 x 10% = $100 • after 5 years, you have $1,500 • This is an example of calculating…….. • Simple interest

  22. Identify each variable ? ? ? ?

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