Saving and Investing Unit

Trackable

being able to track yourself, helps achieve your goals.

Common stock

involves more risk b/c the value of the stock and the amount and frequency of dividends on company earnings and economic conditions.

Inflation

is a general increase in prices. this price hike decreases what you are able to buy with the same amount of money.

Roth IRA

the amount you contribute is taxed

Retirement accounts

401(k) plan is a retirement saving plan offered through an employer.

Real Estate

Investing in land or buildings, a long-term investment, owning a home or an apartment is a type of Real Estate investment.

Preferred stock

is a more conservative investment that involved less risk than common stock.

Keogh plan

is a tax-deferred retirement plan for self-employed people or employees.

Individual Retirement account(IRA)

is another type of retirement account, the amount you van save annually depends on your age income level.

Mutual funds

is offered by a company that collects money from a number of investor and invests that money is securities.

Understanding Interest

is the money a financial institution pays you for the use of your money

Achievable

make sure the goal is within reasonable reach.

Certificates of Deposit

pay a higher rate of interest b/c they require you to commit your money for a specific period of time.

Money Market Deposit Accounts

pay slightly higher interest rate than regular saving accounts, you must maintain a minimum balance before the account earns interest.

Making Investments

research all of the available options in investing before putting money into it, set an investment goal and start out small and build.

How the Interest is calculated

simple interest is paid only on the money initially deposited

Specific

state exactly what you want to achieve, how your going to do it, and when you want to achieve it.

Securities

stocks, bonds, mutual funds, and money market funds

The amount of interest

the rate of interest. the higher the rate the more money you will earn.

Savings

usually put into the safest places or product that allow your access to your money at anytime.

Traditional IRA

you pay taxes on your earning and withdrawal after retirement.

Regular Savings account

can be started with only a few hundred dollars, the exact amount varies from bank to bank, allows you to make deposits and withdrawals at any time and in any amount.

Bonds

a bond is a certificate of debt or obligation by a corporation or government.

Measurable

a goal should be measurable so you know when you have achieved it.

Investment

a greater chance of losing your money than saving. Money is invested in securities, your investment could be lost or you could earn a much higher amount of interest than a saving account would earn.

Money Market Fund

a money market fund is a type of mutual fund that deals only in high interest, short-term investment.

Stock

a stock is share in the ownership of a corporation, you can make or lose money you sell stocks.

Growth funds

are investments in common stocks with growth potential.

Corporate Bond

are issued by corporations.

US saving Bonds

are more of source of savings rather than an investment and can be as little as $50

Municipal Bonds

are sued by state, county, and city governments.

Realistic

don't ignore your limitations

Investing your Money

how long it would it take to double your money