broadening your knowledge of investinglump sum – $5,000 total purchased: 250 shares average price:...
TRANSCRIPT
MKD-7727D-A-NS EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. Page 1 of 10
Broadening Your Knowledge of Investing
1WHERE
AM I TODAY?
2WHERE
WOULD I LIKE TO BE?
3CANI GET
THERE?
4HOW DO
I GET THERE?
5HOW CAN I STAY ON TRACK?
MY FINANCIAL
NEEDS
®
2MKD-7727D-A-SL EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
Broadening Your Knowledge of Investing
edwardjones.com Member SIPC
SAN ANTONIO3-18
1MKD-7727D-A-SL EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
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Broadening Your Knowledge of Investing
Invest for the Long Term
Focus on What You Can Control
Seminar Overview
Develop aStrategy
Stick withQuality
Diversify
4MKD-7727D-A-SL EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
Edward Jones Investment Principles
We focus on individual investors
Long-term investment philosophy
Relationships are key
3MKD-7727D-A-SL EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
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Broadening Your Knowledge of Investing
Stick with QualityRule 2
GOLD
SILV
ER FADS TECH
INTERNETOILDIGITAL
REAL ESTATE
6MKD-7727D-A-SL EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
Develop a StrategyRule 1
STOCK
STOCK
STL TECHNOLOGY8-19
5MKD-7727D-A-SL EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
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Broadening Your Knowledge of Investing
VARIETY
DIVERSIFY
Bonds8MKD-7727D-A-SL EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
DiversifyRule 3
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Broadening Your Knowledge of Investing
$20
COMPANY SHARES
$30
CAPITAL GAIN
$10BOUGHT SHARE OF STOCK FOR
$20
SOLD SHARE OF STOCK FOR
$30
Stocks10MKD-7727D-A-SL EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
Why Bull & Bear?9MKD-7727D-A-SL EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
MKD-7727D-A-NS EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. Page 6 of 10
Broadening Your Knowledge of Investing
Quality Makes a Di� erence
Source: Ned Davis Research, 12/31/1971–6/30/2016. Uses indicated annual dividends on a rolling 12-month basis. Past performance maynot be an indication of future results. The S&P 500 is an unmanaged index and is not available for direct investment. Does not includetransaction costs or taxes. Dividends can be increased, decreased or eliminated at any point without notice. Copyright © 2016Ned Davis Research, Inc. All rights reserved. Further distribution prohibited without prior permission.
18.9% 17.1%
-12.7%
-25.0%
Bull Markets Bear Markets
20%
15%
10%
5%
0%
-5%
-10%
-15%
-20%
-25%
-30%
■ Dividend-paying stocks■ Non-dividend-paying stocks
Average Annual Return
12MKD-7727D-A-SL EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
Stocks Not Paying Dividends Stocks Paying Dividends
9.0%
2.5%
Stick with Quality
The S&P 500 is an unmanaged index and is not available for direct investment. Does not include transaction costs or taxes. Dividends can be increased, decreased or totally eliminated at any point without notice. Copyright © 2016 Ned Davis Research, Inc. All rights reserved. Further distribution prohibited without prior permission.
Dividends Are ImportantAverage Annual Return
11MKD-7727D-A-SL EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
The S&P 500 is an unmanaged index and is not available for direct investment. Does not include transaction costs or taxes. Dividends can be increased, decreased, or totally eliminated at any point without notice. Copyright © 2016 Ned Davis Research, Inc. All rights reserved. Further distribution prohibited without prior permission.
Source: Ned Davis Research, 12/31/1971–6/30/2016. Uses indicated annual dividends on a rolling 12-month basis. Past performance may not be an indication of future results. The S&P 500 is an unmanaged index and is not available for direct investment. Does not include transaction costs or taxes. Dividends can be increased, decreased, or eliminated at any point without notice. Copyright © 2016 Ned Davis Research, Inc. All rights re-served. Further distribution prohibited without prior permission.
MKD-7727D-A-NS EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. Page 7 of 10
Broadening Your Knowledge of Investing
Diversifi cation
MULTIPLE COMPANIES
Professional Management
Benefi ts of Mutual Funds14MKD-7727D-A-SL EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
INVESTORS
INVESTORSINVESTORS
INVESTORS
GROWTH INCOME GROWTH & INCOME
Packaged Investment Products13MKD-7727D-A-SL EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
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Broadening Your Knowledge of Investing
Invest for the Long TermRule 4
16MKD-7727D-A-SL EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
CAPITAL GAINSDISTRIBUTION$ $
SHARE PRICE OFMUTUAL FUNDS
BONDS INTEREST= %
STOCKS DIVIDENDS=
Mutual Funds Earnings15MKD-7727D-A-SL EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
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Broadening Your Knowledge of Investing
MKD-7727D-A-SL EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
Focus on What You Can ControlRule 5
PlanBudgetReview
18
$26
$24
$22
$20
$18
$16
$14
$12
$10
$8
$6
$4
$2
$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Dollar Cost Averaging – $417/Month
Shar
e P
rice
Total Purchased: 300 Shares
Average Price: $17/share21
2628
3532
2628
2119
24
1921
Number of Shares Purchased
$26
$24
$22
$20
$18
$16
$14
$12
$10
$8
$6
$4
$2
$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Lump Sum – $5,000
Shar
e P
rice
Total Purchased: 250 Shares
Average Price: $20/share
Source: Edward Jones. These charts are for illustrative purposes only and are not intended to represent the performance of any security. These illustrations do not include commissions or fees. Past performance does not guarantee future results.
Systematically Investing vs. Lump-sum Investment
Systematic Investing17MKD-7727D-A-SL EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
Source: Edward Jones. These charts are for illustrative purposes only and are not intended to represent the performance of any security. These illustrations do not include commis-sions or fees. Past performance does not guarantee future results.
MKD-7727D-A-NS EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. Page 10 of 10
Broadening Your Knowledge of Investing
Summary
Develop a Strategy
Stick with Quality
Diversify
Invest for the Long Term
Focus on What You Can Control
Rule 1
2
3
4
5
20MKD-7727D-A-SL EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
You can’t
control:Stock
market
Tax laws
Every investment
has some risk
You can control:Saving and spending habits
Having an emergency fund
Your level of debt
MKD-7727D-A-SL EXP 28 FEB 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED. 19