Day 5- Investing

• Show DR- Ch 2: Investing Part 1 and 2 • Finish Simple Interest

Worksheet• Finish Rule of 72

Worksheet• All I NEED…..• Simple Interest, rule of 72

, compound interest

Formative Assessment

• https://docs.google.com/spreadsheet/viewform?formkey=dEx1NnJmYUtnMGl6M3V1R3BJbUJRN3c6MQ

• ALL I EVER NEED TO KNOW, I learned in the first week of Personal Finance

What will we learn about Investing?

• KISS-__________ it____________,_______.

Don’t put money in anything you don’t --__________, and investing does not have to be_______________.

• ____________/DiversificationDiversify, you __________out your investments and, --_______________the risk.If you have all your money in one place, or not diversified, risk is________..

Compare and contrast different types of investments:

Money markets are________________, invests only in --_________ markets. The risk is________.

Bonds are_______, the issuer owes you money. Bonds make __________payments, pay back face value at later date. Risk is _________than stocks.

Single stocks are a small piece of ___________in company. The value of --the company goes up, it pays _________to investors. Single stocks carry high risk. Mutual funds are a _________________managed by an ___________________ --and invested in multiple companies, bonds, etc. It offers investors a variety of goals, depending on the fund and its investment charter. The risk is _________ because of diversification.

Rental real estate is a piece of property owned by a person who rents it --out to another. Least liquid type of investment.

Annuities are savings accounts with insurance companies. They have a low risk.

Key Terms

• Diversification-• Liquity• Mutual Fund• Risk• Risk Return Ratio• Share