Investing in the Stock Market
Download
1 / 94

Social Impact of Investing - PowerPoint PPT Presentation


  • 208 Views
  • Updated On :

Investing in the Stock Market. The stock market is often compared to gambling. The stock market is actually a lot more like gardening. Planting. Growing. Harvesting. Damage Control. And maybe more damage control. Creativity. Money is the language of cooperation.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Social Impact of Investing' - Melvin


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript









Slide10 l.jpg

Money is the language of cooperation.

http://www.luthersem.edu/images/home/Student_group_holding_hands2.jpg


Slide11 l.jpg

Free markets allow thousands of people to cooperate in making an ordinary pencil.

Milton Friedman

Economist, University of Chicago

http://elver.cellosoft.com/Milton_Friedman.jpg

http://www.luthersem.edu/images/home/Student_group_holding_hands2.jpg


Social impact of investing l.jpg
Social Impact of Investing making an ordinary pencil.

How do companies use the money you invest?

How does this affect ordinary people?


Social impact of investing13 l.jpg
Social Impact of Investing making an ordinary pencil.

How do companies use the money you invest?

How does this affect ordinary people?

expand existing businesses

start new businesses


Social impact of investing14 l.jpg
Social Impact of Investing making an ordinary pencil.

How do companies use the money you invest?

How does this affect ordinary people?

expand existing businesses

start new businesses

creates more jobs

creates higher-paying jobs


Slide15 l.jpg

But how do I do it? making an ordinary pencil.

Open a Roth IRA

do it right now, takes 10 minutes

Buy shares of SSO

once a year, just 10 minutes

(once a month is even better!)


How hard is it to set up a roth ira l.jpg
How hard is it to set up a Roth IRA? making an ordinary pencil.


Slide17 l.jpg

Opening your Roth IRA making an ordinary pencil.

  • Go to office of a discount stock broker

  • Fill out a form to open a Roth IRA account

  • Give them $500 to put in your account


Slide18 l.jpg

Opening your Roth IRA making an ordinary pencil.

  • Go to office of a discount stock broker

    can also do this on-line, if you like

  • Fill out a form to open a Roth IRA account

  • Give them $500 to put in your account


Slide19 l.jpg

Opening your Roth IRA making an ordinary pencil.

  • Go to office of a discount stock broker

    can also do this on-line, if you like

  • Fill out a form to open a Roth IRA account

    • takes about 10 minutes

    • they give you an account number and password

  • Give them $500 to put in your account


  • Slide20 l.jpg

    Discount stock brokers are very different making an ordinary pencil.

    Minimum amount you may invest

    Fee per purchase

    Scottrade

    $500

    $7

    TD Ameritrade

    No minimum

    $10

    Charles Schwab

    $1,000

    $13

    E*Trade

    $1,000

    $13

    Fidelity

    No minimum

    $20

    http://scottrade.com/online_broker_comparison/discount_brokerage_comparison.asp


    Slide21 l.jpg

    Scottrade is the cheapest right now making an ordinary pencil.

    • only $7 fee for each purchase

    • only $500 minimum is needed to invest

    • as fast as opening a checking account


    Slide22 l.jpg

    Roth IRA making an ordinary pencil.


    Slide23 l.jpg

    Roth IRA making an ordinary pencil.

    Instead of choosing this box for an individual account…


    Slide24 l.jpg

    Roth IRA making an ordinary pencil.

    Choose this box for a Roth IRA account


    Slide25 l.jpg

    Roth IRA making an ordinary pencil.

    and write in “Roth” on this line

    Choose this box for a Roth IRA account


    Slide26 l.jpg

    What you get making an ordinary pencil.

    • Account number

    • Password

    • Deposit slip for your $500


    Slide27 l.jpg

    But how do I do it? making an ordinary pencil.

    Open a Roth IRA

    do it right now, takes 10 minutes

    Buy shares of SSO

    once a year, just 10 minutes

    (once a month is even better!)


    Slide28 l.jpg

    The Next Day making an ordinary pencil.

    Your new Roth IRA:

    Cash $500

    Total Account Value $500


    Slide29 l.jpg

    Your new Roth IRA: making an ordinary pencil.

    Cash $500

    Total Account Value $500

    Buy SSO

    SSO costs $70 for one share

    You buy 7 shares for $490

    Fee is $7 for the SSO purchase


    Slide30 l.jpg

    Your new Roth IRA: making an ordinary pencil.

    Cash $500

    Total Account Value $500

    After SSO purchase:

    SSO – 7 shares $490

    Cash $3

    Total Account Value $493

    Buy SSO

    SSO costs $70 for one share

    You buy 7 shares for $490

    Fee is $7 for the SSO purchase


    Slide31 l.jpg

    Your new Roth IRA: making an ordinary pencil.

    Cash $500

    Total Account Value $500

    After SSO purchase:

    Five years later:

    SSO – 7 shares $490

    Cash $3

    Total Account Value $493

    SSO – 7 shares $980

    Cash $3

    Total Account Value $983

    SSO costs $70 for one share

    You buy 7 shares for $490

    Fee is $7 for the SSO purchase

    Five years pass

    WOW!!!


    Slide32 l.jpg

    Time making an ordinary pencil.


    Slide33 l.jpg

    Time making an ordinary pencil.

    We usually just think of time as something that turns young people into old people.


    Slide34 l.jpg

    In your job, making an ordinary pencil.YOU do all the work.


    Slide35 l.jpg

    In your job, making an ordinary pencil.YOU do all the work.

    In the stock market, TIME does all the work.


    Slide36 l.jpg

    In your job, making an ordinary pencil.YOU do all the work.

    but only if you turn on the faucet

    In the stock market, TIME does all the work.


    Slide37 l.jpg

    In your job, making an ordinary pencil.YOU do all the work.

    1. Open a Roth IRA

    2. Buy shares of SSO

    In the stock market, TIME does all the work.


    But how do i get my money back l.jpg
    But how do I get my money back? making an ordinary pencil.


    But how do i get my money back39 l.jpg
    But how do I get my money back? making an ordinary pencil.

    Easy - go to broker’s office & ask them for a cashier’s check.

    For larger accounts, they even give you a regular checkbook, just like an ordinary checking account.


    Slide40 l.jpg

    Two Easy Steps making an ordinary pencil.

    Open a Roth IRA

    do it right now, takes 10 minutes

    Buy shares of SSO

    once a year, just 10 minutes

    (once a month is even better!)


    Slide41 l.jpg

    Why is SSO a making an ordinary pencil.

    simple, safe strategy for beginners?


    Slide42 l.jpg

    Combined Share Prices of the Biggest 500 Companies (S&P500) making an ordinary pencil.

    The basic direction of the US stock market is overwhelmingly upwards

    Now

    1950

    http://finance.yahoo.com/q/bc?s=%5EGSPC&t=my&l=on&z=l&q=l&c=


    Slide43 l.jpg

    SSO making an ordinary pencil.

    stock price

    SSO

    • combination of the largest 500 U.S. companies

    • stock price has risen at 14.8% per year for 50 years

    General Motors

    1962

    Now

    http://finance.yahoo.com/q/bc?t=my&s=GM&l=on&z=l&q=l&c=&c=%5EGSPC


    Slide44 l.jpg

    When you buy SSO, your only risk is that the entire United States economy will continue to succeed as it has for 200 years.


    Slide45 l.jpg

    crash of 2000 States economy will continue to succeed as it has for 200 years.

    What about stock market crashes?

    SSO

    stock price

    still haven’t recovered!

    crash of 1987

    crash of 1973-1974

    http://finance.yahoo.com/q/bc?t=my&s=GM&l=on&z=l&q=l&c=&c=%5EGSPC


    Slide46 l.jpg

    When you buy SSO every year, crashes average out quickly. States economy will continue to succeed as it has for 200 years.

    Suppose you started buying SSO at the worst possible time

    March 24, 2000

    Purchases in later years are much cheaper

    http://finance.yahoo.com/q/bc?t=my&s=SPY&l=on&z=l&q=l&c=


    Slide47 l.jpg

    When you buy SSO every year, crashes average out quickly. States economy will continue to succeed as it has for 200 years.

    Price today

    Suppose you started buying SSO at the worst possible time

    March 24, 2000

    Of the last 8 purchases, 7 are already profitable

    http://finance.yahoo.com/q/bc?t=my&s=SPY&l=on&z=l&q=l&c=


    Buy sso on your birthday each year l.jpg
    Buy States economy will continue to succeed as it has for 200 years.SSOon your birthday each year.

    http://www.americangirlplace.com/images/chi/pkgs/img_chi_pkgs_party.jpg


    Buy sso on your birthday each year49 l.jpg
    Buy States economy will continue to succeed as it has for 200 years.SSOon your birthday each year.

    once a month is even better!

    http://www.americangirlplace.com/images/chi/pkgs/img_chi_pkgs_party.jpg


    Slide50 l.jpg

    Is there a States economy will continue to succeed as it has for 200 years.

    better strategy than SSO?


    Slide51 l.jpg

    EEM States economy will continue to succeed as it has for 200 years. stock price is increasing at 36% per year

    SSO Standard & Poor’s 500 Index Fund (Ultra)

    - largest 500 U.S. companies

    EEM Emerging Markets Index Fund (iShares ) - large companies outside the U.S.

    SSO stock price is increasing at 14.8% per year

    http://finance.yahoo.com/q/bc?s=SPY&t=my&l=off&z=l&q=l&c=eem,iws


    Slide52 l.jpg

    Choosing Your Risk Level States economy will continue to succeed as it has for 200 years.

    Riskiest

    Individual Companies

    Exchange Traded Funds

    Each is a group of similar stocks

    SSO

    The 500 largest US companies

    Safest


    Slide53 l.jpg

    Choosing Your Risk Level States economy will continue to succeed as it has for 200 years.

    Riskiest

    Individual Companies

    Exchange Traded Funds

    Each is a group of similar stocks

    Just one

    choice!

    SSO

    The 500 largest US companies

    Safest


    Slide54 l.jpg

    Choosing Your Risk Level States economy will continue to succeed as it has for 200 years.

    Riskiest

    Individual Companies

    600 choices

    Exchange Traded Funds

    Each is a group of similar stocks

    Just one

    choice!

    SSO

    The 500 largest US companies

    Safest


    Slide55 l.jpg

    Choosing Your Risk Level States economy will continue to succeed as it has for 200 years.

    Riskiest

    8000 choices

    Individual Companies

    600 choices

    Exchange Traded Funds

    Each is a group of similar stocks

    Just one

    choice!

    SSO

    The 500 largest US companies

    Safest


    Slide56 l.jpg

    Exchange Traded Funds States economy will continue to succeed as it has for 200 years.

    (ETFs)

    An ETF is a group of related stocks


    Slide57 l.jpg

    SSO States economy will continue to succeed as it has for 200 years.

    Ultra S&P500 ETF


    Slide58 l.jpg

    SSO States economy will continue to succeed as it has for 200 years.

    Ultra S&P500 ETF

    Includes many different companies


    Slide59 l.jpg

    SSO States economy will continue to succeed as it has for 200 years.

    Ultra S&P500 ETF

    Includes 500 different companies

    Diversified across many sectors


    Slide60 l.jpg

    IYE States economy will continue to succeed as it has for 200 years.

    Energy ETF


    Slide61 l.jpg

    IYE States economy will continue to succeed as it has for 200 years.

    Energy ETF

    Includes many different companies


    Slide62 l.jpg

    IYE States economy will continue to succeed as it has for 200 years.

    Energy ETF

    Includes many different companies

    Nearly all are in the energy sector


    Slide63 l.jpg

    Why is a Roth IRA the best kind of account? States economy will continue to succeed as it has for 200 years.


    Slide64 l.jpg

    Retirement Basics States economy will continue to succeed as it has for 200 years.

    • typical old-style pension plan

    • 401(k) plan

    • Roth IRA

    • Roth 401(k)


    Slide65 l.jpg

    Retirement Basics States economy will continue to succeed as it has for 200 years.

    • typical old-style pension plan

      • you get exactly $3000 per month until you die

      • amount never rises (worth 3.4% less eachyear)

    • 401(k) plan

    • Roth IRA

    • Roth 401(k)


    Slide66 l.jpg

    Retirement Basics States economy will continue to succeed as it has for 200 years.

    • typical old-style pension plan

      • you get exactly $3000 per month until you die

      • amount never rises (worth 3.4% less eachyear)

    • 401(k) plan much better

      • you may invest the money, get 14.8% more each year

      • some employers makematching contributions

      • but you still have to pay tax

    • Roth IRA

    • Roth 401(k)


    Slide67 l.jpg

    401(k) Retirement Plan States economy will continue to succeed as it has for 200 years.

    Ted Benna

    https://www.expertplan.com/images/tedbenna2.jpg


    Slide68 l.jpg

    401(k) Retirement Accounts States economy will continue to succeed as it has for 200 years.

    • Your best deal if your employer makes a large matching contribution

    • Some employers put $50 into your 401(k) account for every $100 you put in

    • Basically like getting 50% interest, an incredible deal


    Slide69 l.jpg

    Some Brief History States economy will continue to succeed as it has for 200 years.

    • typical old-style pension plan

      • you get exactly $3000 per month until you die

      • amount never rises (worth 3.4% less eachyear)

    • 401(k) plan much better

      • you may invest the money, get 14.8% more each year

      • some employers makematching contributions

      • but you still have to pay tax

    • Roth IRA

    • Roth 401(k)


    Slide70 l.jpg

    Some Brief History States economy will continue to succeed as it has for 200 years.

    • typical old-style pension plan

      • you get exactly $3000 per month until you die

      • amount never rises (worth 3.4% less eachyear)

    • 401(k) plan much better

      • you may invest the money, get 14.8% more each year

      • some employers makematching contributions

      • but you still have to pay tax

    • Roth IRA also better, but unlike 401(k)

      • you may invest the money, get 14.8% more each year

      • employer not involved,no matching contributions

      • you pay no tax

    • Roth 401(k)


    Slide71 l.jpg

    Roth IRA States economy will continue to succeed as it has for 200 years.

    Roth Individual Retirement Account -1998

    • you pay NO TAX on Roth IRA

    • you can only contribute $4000 per year

    • start receiving retirement pay at age 60

    • no penalty for early withdrawal

      • but pay 15% capital gains tax on any increases

    William V. Roth, Jr.

    U.S. Senator,Delaware

    www.fairmark.com/rothira/roth101.htm

    http://www.sussexcountyonline.com/campaign2000/results/images/roth.jpeg


    Slide72 l.jpg

    15% Capital Gains Tax States economy will continue to succeed as it has for 200 years.

    • Deposit $4000 into a Roth IRA in 2007

      • Invest the $4000 in a good stock (like SSO)

      • Stock price increases 10% by 2008 ($400)

    • Roth IRA is worth $4400 in 2008

      • you lose your job, and you need money

      • withdraw the entire $4400 to live on

      • pay 15% tax on $400 increase ($60 tax)

      • you have $4340 left to live on


    Slide73 l.jpg

    Some Brief History States economy will continue to succeed as it has for 200 years.

    • typical old-style pension plan

      • you get exactly $2000 per month until you die

      • amount never rises (worth 3.4% less eachyear)

    • 401(k) plan much better

      • you may invest the money, get 14.8 % more each year

      • some employers makematching contributions

      • but you still have to pay income tax each year

    • Roth IRA also better, but unlike 401(k)

      • you may invest the money, get 14.8 % more each year

      • employer not involved,no matching contributions

      • you pay no taxes

    • Roth 401(k)


    Slide74 l.jpg

    Some Brief History States economy will continue to succeed as it has for 200 years.

    • typical old-style pension plan

      • you get exactly $2000 per month until you die

      • amount never rises (worth 3.4% less eachyear)

    • 401(k) plan much better

      • you may invest the money, get 14.8 % more each year

      • some employers makematching contributions

      • but you still have to pay income tax each year

    • Roth IRA also better, but unlike 401(k)

      • you may invest the money, get 14.8 % more each year

      • employer not involved,no matching contributions

      • you pay no taxes

    • Roth 401(k) best of both! (new 2006)


    Slide75 l.jpg

    Review States economy will continue to succeed as it has for 200 years.

    • Open a Roth IRA

    • Buy shares of SSO


    Slide76 l.jpg

    Review States economy will continue to succeed as it has for 200 years.

    • Open a Roth IRA

      • Go to office of a discount stock broker

        • can also do this on-line, if you like

    • Buy shares of SSO


    Slide77 l.jpg

    Review States economy will continue to succeed as it has for 200 years.

    • Open a Roth IRA

      • Go to office of a discount stock broker

        • can also do this on-line, if you like

      • Fill out a form to open a Roth IRA account

        • they give you an account number and password

    • Buy shares of SSO


    Slide78 l.jpg

    Review States economy will continue to succeed as it has for 200 years.

    • Open a Roth IRA

      • Go to office of a discount stock broker

        • can also do this on-line, if you like

      • Fill out a form to open a Roth IRA account

        • they give you an account number and password

      • Give them $500 to put in your account

    • Buy shares of SSO


    Slide79 l.jpg

    Review States economy will continue to succeed as it has for 200 years.

    • Open a Roth IRA

      • Go to office of a discount stock broker

        • can also do this on-line, if you like

      • Fill out a form to open a Roth IRA account

        • they give you an account number and password

      • Give them $500 to put in your account

    • Buy shares of SSO

      • Go to WWW & log into new Roth IRA

      • Buy shares of SSO with your $500


    Slide80 l.jpg

    http://www.cote100.com/fr/boutique/boutique_desc/images/babylone_small.gifhttp://www.cote100.com/fr/boutique/boutique_desc/images/babylone_small.gif

    http://www.nnbh.com/base/63/images/9057120763.jpg

    http://www.qbooks.com.tw/C_qbooks/book_pic/BIIXXC100004.jpg

    www.buch-des-tages.de/ Archiv/20020707.htm

    http://www.pragma.cz/files/2f24f9b0ed5a310f5fab5bf90ff65bb6.jpg

    http://www.ujkonyvpiac.hu/images/ujkonyvek/Babilon.jpg

    http://www.edicionesobelisco.com/portadas/3717.jpg

    http://images.amazon.com/images/G/covers/0/45/116/520/0451165209.l.gif


    Slide81 l.jpg

    Pay yourself first.http://www.cote100.com/fr/boutique/boutique_desc/images/babylone_small.gif

    Save or invest 10% of each paycheck as soon as you’re paid.

    Then pay your new bills.


    Slide82 l.jpg

    But I’m just a kid.http://www.cote100.com/fr/boutique/boutique_desc/images/babylone_small.gif

    My job at Quizno’s doesn’t pay that much.

    • shouldn’t I wait until I get a real job?


    Slide83 l.jpg

    But I’m just a kid.http://www.cote100.com/fr/boutique/boutique_desc/images/babylone_small.gif

    My job at Quizno’s doesn’t pay that much.

    • shouldn’t I wait until I get a real job?

    No. You need actual practice in investing.


    Slide84 l.jpg

    But I’m just a kid.http://www.cote100.com/fr/boutique/boutique_desc/images/babylone_small.gif

    My job at Quizno’s doesn’t pay that much.

    • shouldn’t I wait until I get a real job?

      I already have a lot of student loan debt

    • shouldn’t I pay that off first?

    No. You need actual practice in investing.


    Slide85 l.jpg

    But I’m just a kid.http://www.cote100.com/fr/boutique/boutique_desc/images/babylone_small.gif

    My job at Quizno’s doesn’t pay that much.

    • shouldn’t I wait until I get a real job?

      I already have a lot of student loan debt

    • shouldn’t I pay that off first?

    No. You need actual practice in investing.

    No. You need to invest even when you’re in debt.


    Slide86 l.jpg

    What if I’m in debt?http://www.cote100.com/fr/boutique/boutique_desc/images/babylone_small.gif

    Save or invest 10% of each paycheck as soon as you’re paid.

    Use the next 20% of each paycheck to pay a portion of your debt.

    Then pay your new bills.


    Pay all credit card debt first l.jpg
    Pay all credit card debt firsthttp://www.cote100.com/fr/boutique/boutique_desc/images/babylone_small.gif

    • your absolute highest priority

    • credit card interest is ridiculous, often 20%

    www.best-credit-card-deals.com/images/best-credit-card-deals.jpg


    Giving l.jpg
    Givinghttp://www.cote100.com/fr/boutique/boutique_desc/images/babylone_small.gif

    • get started now

    • it’s important to practice giving, even when you don’t have much


    Slide91 l.jpg

    If you die, when your new baby sister turns 60, she’s already a multimillionaire TAX-FREE

    x

    x

    Jennifer Thompson

    3 Jan 08

    123-45-6789

    sister

    100


    Slide92 l.jpg

    If you die, your favorite charity gets a million dollars already a multimillionaire TAX-FREE

    FEIN

    123-45-6789

    charitable foundation

    x

    American Red Cross

    100

    x


    Csu student investing club l.jpg
    CSU Student Investing Club already a multimillionaire TAX-FREE

    • every Monday

    • 6 PM

    • Rockwell Hall, Room 119

    You will not be spending any money!


    Further reading l.jpg
    Further Reading already a multimillionaire TAX-FREE


    ad