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