Скачать презентацию Investing Savings and Investing Why Invest Скачать презентацию Investing Savings and Investing Why Invest

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Investing Savings and Investing Investing Savings and Investing

Why Invest? • Hedge against inflation • Rise in a general level of prices Why Invest? • Hedge against inflation • Rise in a general level of prices • Investing to increase wealth • Invest to save for long term goals • Investing is fun and challenging

The Rule of 72 • Technique used for estimating the number of years required The Rule of 72 • Technique used for estimating the number of years required to double one’s investment at a given rate of return • Divide 72 by the rate of return expressed as a percentage • To estimate the rate of return required to double your money in a specific time period, divide 72 by the number of years

Risk • Risk is the chance that an investment’s value with decrease • All Risk • Risk is the chance that an investment’s value with decrease • All investment carries risk • Risk takers – those willing to accept more risk in the hopes of getting a greater return • Risk averse – less willing to accept risk • Who tends to make more money in the long term?

Types of Risk • Diversification – spreading the risk among many types of investment Types of Risk • Diversification – spreading the risk among many types of investment • Short term risk is lower than long term risk • Can you predict the future? • Interest rate risk – return on investment will not keep pace with inflation

More Kinds of Risk • Political risk – government actions that impact business conditions More Kinds of Risk • Political risk – government actions that impact business conditions (regulations, tariffs, etc) • Market risk – caused by business declines or interest rate fluctuations • Nonmarket risk – risk unrelated to market trends (unpredictable) • Company or industry risk – events that effect only one company or industry

Criteria For Choosing an Investment • Degree of safety • Degree of liquidity • Criteria For Choosing an Investment • Degree of safety • Degree of liquidity • Expected dividends or interest • Expected growth • Reasonable purchase price and fees • Tax benefits

Investment Strategies • Define your financial goals • Go slowly • Follow through – Investment Strategies • Define your financial goals • Go slowly • Follow through – implement your plan • Keep good records • Seek good advice • Stay current and informed • Know your risk profile and comfort zone

Sources of Investment Information • Newspapers • Investor Services and Newsletters • Financial Magazines Sources of Investment Information • Newspapers • Investor Services and Newsletters • Financial Magazines • Online financial or news sites • Brokers • Full service brokers provide clients with analysis and opinions based on their knowledge and industry information • Discount brokers buy and sell securities for clients at a reduced price

Additional Sources of Financial Info • Financial advisors or certified financial planners • Usually Additional Sources of Financial Info • Financial advisors or certified financial planners • Usually receives a fee for service • Annual reports or 10 -Ks are a summary of a corporation’s financial results for the year • Online investor education • Motley Fool (www. fool. com) • Teen investor (www. teeninvestor. com)