Investments simplified
1 / 15

Investments: Simplified - PowerPoint PPT Presentation

  • Uploaded on

Investments: Simplified. Adult Living. What is investing?. Investing is a way to make money with your money. First you have to make money Try to SAVE some money in a highly liquid account. NEXT, make your money grow through investing. Why should I invest?. Two main reasons:

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

PowerPoint Slideshow about ' Investments: Simplified' - kaiyo

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

What is investing
What is investing?

  • Investing is a way to make money with your money.

  • First you have to make money

  • Try to SAVE some money in a highly liquid account.

  • NEXT, make your money grow through investing.

Why should i invest
Why should I invest?

  • Two main reasons:

    • To stay ahead of inflation

    • To achieve financial goals

When should i invest
When should I invest?


Let the “snowball” work for you!!!

What are the risks
What are the risks?

  • Losing money

  • Risk normally works proportionately with reward….

    the lower your risk (conservative investments) the lower your reward

    the bigger your risk… the more the possible reward


  • Everyone who is making money should be investing AFTER setting up a savings account with 3-6 months worth of income saved.

  • There are different types of investors – conservative (low-risk takers) and more aggressive (risky) YOU may be one of these or a combination throughout your life depending on your goals.

Savings accounts
Savings Accounts

  • 1st “investment”

  • Set up at a bank

  • Should have 3-6 months worth of income in it

  • Highly liquid

  • No risk- FDIC

  • LOW interest


  • Certificates of deposits

  • YOU decide the length of time (3mon- 15yrs) YOU decide the amount ($100-$250,000)

  • Bank determines interest rate for your CD.

  • GREAT first investment!!

Treasury bills
Treasury Bills

  • Backed by the U.S. government

  • Range in price from $1,000-5 million

  • Avaliable in 1 month, 3 month, and 6 month maturities

  • Low risk (FDIC)

  • Low return (BUT over short time)


  • Corporate or Government bonds- they sell bonds- you loan them money- they repay in a set period of time (usually LONG-5-25 yrs)

  • Higher interest (compared to savings or CD)

  • Not liquid- penalized if “cashed” early

  • If the company bankrupts- you MAY not get paid (but will be paid before stockholders)


  • You own a little piece of the company

  • If the company does well… your little piece of it does well (profits)

  • If the company bankrupts you lose you money

  • Risk & reward depends on the companies you choose to invest in.

  • Not very liquid- need to sell your piece before you get the $

Real estate
Real Estate

  • Purchasing property or land for the purpose of resale

  • Time consuming

  • Expensive initial investment

  • Potential rewards- HIGH, risk-HIGH

  • Takes some knowledge of the R.E. “market”- when/where to buy and possibly “flipping” knowledge/ability


  • Oil, gold, silver, metals

  • Investing in our future need for this product- can be speculitive

  • Low interest but steady income


  • Items that increase in value due to time/ demand

  • Coins, stamps, baseball cards, beanie babies, etc

  • Can’t count on future demand for these items

  • Usually need to preserve the item for best value

  • Can make $ off “things” you don’t need/want anymore

Mutual funds
Mutual Funds

  • A “bucket” of stocks or bonds

  • Professionally managed

  • Diversification reduces risk

  • Risk depends on what is in your “bucket”

  • Liquidity depends on what is in your “bucket”

  • Great for an investor who doesn’t want to constantly monitor your investment