Slide 2. What is Investing?
|
|
- Hector Terry
- 8 years ago
- Views:
Transcription
1 Slide 1 Investments Investment choices can be overwhelming if you don t do your homework. There s the potential for significant gain, but also the potential for significant loss. In this module, you ll learn about the different types of investments so you can understand your choices. You ll learn what asset allocation means and why diversification is so important. Finally, we ll look closely at the benefit of managing your investments through the use of funds. This module will give you the tools to understand how to make your money work for you. Let s get started.
2 Slide 2 What is Investing? First, you need to know what investing is. Investing is putting money to work for you to make more money. There is risk involved, as investments may not grow or even lose value for a variety of reasons; but over a long-term period of time, investments tend to grow.
3 Slide 3 Investment Goals Before you begin investing, there are probably a few things you need to think about. Why are you investing? What s your long-term goal? Maybe you want to put away money for retirement or a child s college education. Whatever your goal may be, identifying the purpose will help drive your investment choices.
4 Slide 4 PROPERTIES Allow user to leave interaction: Show Next Slide Button: Completion Button Label: Anytime Show always Next Slide If you know why you re investing, you ll be in a better position to determine when you ll need this money. Click on each of the tabs to learn more about considerations you should take into account before investing. Time Horizon - Consider your time horizon before you begin investing. For instance, if you re 25 years old and investing for your retirement, you know that you probably won t need to touch your investments for forty years. Your time horizon can help you to determine the best investments to meet your goals. Risk Tolerance - Knowing your risk tolerance will help you to determine appropriate investments for your goals. Your risk tolerance is essentially your comfort zone with investing. If you re unable to sleep at night because of your investment choices, you may have exceeded your tolerance for risk. Financial Resources Your financial resources may affect how you invest your money. You might be more willing to invest $10,000 if you re a millionaire, but it probably wouldn t make sense if you earn $25,000 a year. A $10,000 loss probably wouldn t hurt a millionaire s overall financial picture, but it would be a significant loss of annual income for someone who earns $25,000 a year. The millionaire would likely be willing to risk or assume greater risk in his investments, knowing that his finances could absorb a potential loss.
5 Personality - Your personality plays a role in guiding your investing. Some people are willing to assume more risk than others, with the goal of a higher payoff. Others aren t as willing to risk money they ve worked hard to accumulate.
6 Slide 5 Types of Asset Classes Stocks Bonds Cash equivalents Real estate You know what your goals are, now let s determine how to reach them using various asset classes. An asset class is a group of securities that typically behave similarly in the market place when compared to other groups of securities. Some asset classes are stocks, bonds, cash equivalents, and real estate. Each of these asset classes can provide you with some level of reward, but all have some risk associated with them. Let s look at each of the asset classes in detail.
7 Slide 6 Stocks Risk Stock shares represent ownership, or equity, in a specific company. Stockholders gain the right to participate in the financial success of a company, either through the increase in the stock s value, receiving a share of the company s earnings in the form of dividends, or both. But companies can go through financially difficult times or even go bankrupt. This means that stockholders can lose some or all of their investments. While stocks have the greatest potential for financial gain, they can also have the greatest amount of risk.
8 Slide 7 Stock Classification Large Medium Small Stocks can be classified in several ways. One way is based on their market capitalization, or the size of their market values. Market capitalization is simply the price of the stock multiplied by the number of shares that are owned by the investors. Commonly listed as large cap, midcap or small cap stocks, the size of a company may allow it to perform well under different market conditions. Sometimes small-cap stocks may out-perform large-cap stocks, and vice versa. Click on each square to reveal the market capitalization characteristics.
9 Slide 8 Stock Classification Large Medium Small These are the stocks of well-established companies that generally pay dividends. The vast size and maturity of these companies can make them well positioned to weather inevitable economic downturns.
10 Slide 9 Stock Classification Large Medium Small Small-cap stocks have the potential for rapid acceleration in earnings and growth but can be highly volatile. Their companies are often viewed as being on the cutting edge of their industries.
11 Slide 10 Stock Classification Large Medium Small Mid-cap stocks are of companies that generally are established, yet innovative and responsive, and have the potential for continued earnings growth.
12 Slide 11 PROPERTIES Allow user to leave interaction: Show Next Slide Button: Completion Button Label: Anytime Show always Next Slide Stocks can also by classified by their characteristics. Click on each characteristic to learn more. Blue Chip Blue chip stocks are large, well-known companies. These companies are typically strong financially, with a history of consistent earnings. People invest in these companies for their growth potential, as well as dividends. Income Income stocks are those that pay higher than average dividends. People invest in them for the additional income that dividends provide. Banks, insurance companies, and utility companies are typical income stocks. Growth Growth stocks are those that have the potential for higher than average growth than others in the market with similar risk characteristics. Growth stocks typically make little or no dividend payments, People invest in growth stocks primarily for their potential to appreciate in price. Value Value stocks are typically considered to be undervalued relative to the rest of the market. Investors believe that they re buying the stock while it s on sale. Speculative Speculative stocks possess a high probability of low or negative rates of return and a low probability of normal or high rates of return.
13 Cyclical Cyclical stocks are those companies that follow the same pattern of business activity. They tend to perform well in the first phase of an economic recovery, but don t do as well as the economy begins to slow down. Defensive Defensive stocks are companies that produce goods and services that are in demand, regardless of the status of the economy. Examples of defensive stocks include food, tobacco, and utilities. International International stocks are companies that aren t based in the United States. These stocks can be in developed countries such Japan, Australia, and those in Europe, or in emerging markets such as Brazil, China, Russia, and India.
14 Slide 12 PROPERTIES Allow user to leave interaction: Show Next Slide Button: Completion Button Label: Anytime Show always Next Slide As we have said previously, stocks have the greatest potential for return but also carry various forms of risk. Let s talk about some of the different types of risk you may encounter when investing in stocks. Click on each button to learn more. Market risk Market risk is the potential loss due to factors such as real or perceived adverse economic conditions, political developments, and investor sentiment. Business risk Business risk is the risk that an investment will lose value because of a decline in a specific company or industry. Financial risk Companies run the risk that they will not have enough money to meet their debt obligations, thereby putting the company in jeopardy. Liquidity risk This risk lies with the uncertainty of being able to sell a stock quickly and at its market value. This can occur with stocks with very little demand. Tax risk Tax risk is the potential that changes in the law will affect the taxation of stock gains and/or dividend payments. Country risk Country risk typically applies to international stocks. It s the risk that events or laws in a country will negatively affect the stocks in that country.
15 Currency risk Currency risk applies to the investment in foreign stocks. It s the risk that the value of a foreign stock, measured in U.S. dollars, will be negatively impacted due to unfavorable changes in currency exchange rates.
16 Slide 13 Bonds The next asset class is bonds, also called fixed income instruments. Bonds are loans to corporations or to governments, typically in $1000 denominations. The bond issuer, or borrower, agrees to make promised payments at specific dates typically in the form of interest and principal to the bondholder, or lender. Technically, bonds mature or the principal comes due 10 or more years after they are issued. But many people use the term loosely by including debt obligations with shorter maturity periods. Bonds are rated by firms such as Standard & Poor s and Moody s to indicate their credit quality. The bonds are graded based on their issuers overall financial strength and their ability to pay the interest and principal when they re due.
17 Slide 14 PROPERTIES Allow user to leave interaction: Show Next Slide Button: Completion Button Label: Anytime Show always Next Slide There are a number of different types of fixed income instruments. Click on the terms on the left to learn about each type. Corporate bonds - Corporate bonds are issued by corporations and are backed by the issuer s ability to make its payments. High-yield High-yield bonds are typically corporate bonds with lower credit ratings than investment grade bonds and pay a higher interest rate in order to attract investors. International bonds International bonds are those issued by foreign companies or governments. Municipal bonds Municipal bonds are those issued by states or local governments. They are exempt from federal taxes and come in two types. General obligation bonds are backed on the taxing authority of the government. Revenue bonds are backed by the revenue created by a specific project. Treasury inflation protected securities (TIPS) TIPS are Treasury securities that are intended to provide protection against inflation. Principal is adjusted based on the Consumer Price Index (CPI). The principal increases with inflation and decreases with deflation. Because interest payments are based on the adjusted principal, TIPS will rise with inflation and fall with deflation.
18 U.S Treasuries These instruments are issued by the United States government and include bills, notes and bonds. Bills are sold with one month, three month, or six month maturities. Notes mature in 2 to 10 years and bonds mature in 10 to 30 years.
19 Slide 15 Bond Risk Interest Rate Default Prepayment Reinvestment Although they are considered to be less risky than stocks, bonds still carry various types of risk. Click on each of the buttons to learn about some of these risks.
20 Slide 16 Interest Rate Exit Interest Rate Default Prepayment Reinvestment Interest rate risk is the risk that when interest rates rise, bonds will decline in value. To learn more, select one of the other buttons or click Exit when you're done.
21 Slide 17 Default Exit Interest Rate Default Prepayment Reinvestment Default risk, also known as credit risk, is the risk that a bond issuer is unable to pay the interest or principal when it s due. To learn more, select one of the other buttons or click Exit when you're done.
22 Slide 18 Prepayment Exit Interest Rate Default Prepayment Reinvestment Prepayment risk is the risk that the issuer will return the principal before the scheduled maturity date, resulting in the bondholder s unanticipated loss of income. To learn more, select one of the other buttons or click Exit when you're done.
23 Slide 19 Reinvestment Exit Interest Rate Default Prepayment Reinvestment Reinvestment risk is the risk that the bondholder will reinvest the cash flow from bond payments at lower interest rates. To learn more, select one of the other buttons or click Exit when you're done.
24 Slide 20 PROPERTIES Allow user to leave interaction: Show Next Slide Button: Completion Button Label: Anytime Show always Next Slide The third type of asset class is cash equivalents. Cash equivalents are investment securities that are short-term, have high credit quality and are often highly liquid. While these securities typically don t lose their value, they may lose their purchasing power during periods of high inflation. Click on each of the tabs to learn about the different types of cash equivalents. Certificates of Deposit (CDs) CDs are savings accounts sold by a bank in any denomination. They pay a specific interest rate and mature within in a specific period. CDs are not as liquid as other cash equivalents, as you may pay a penalty if you need to access the money prior to the CD s maturity. Money Market Account Money market accounts are savings accounts at banks that require larger than normal deposits. Restrictions may be placed on the number of transactions that can be made in a month. These are insured by the Federal Deposit Insurance Corporation (FDIC). Money Market Fund A money market fund's purpose is to provide investors with a safe place to invest easily accessible cash-equivalent assets and is characterized as a low-risk, low-return investment. Unlike money market accounts, these funds are not insured by the FDIC.
25 Slide 21 Real Estate Another type of asset class is real estate. People typically think of their homes as their investment in real estate. But real estate investment trusts, or REITs, are securities that allow people to invest in real estate holdings that would otherwise be unavailable. REITs are divided into three types: equity, mortgage, and hybrids. Equity REITs invest directly in real estate and own and manage properties. Revenues primarily come from rental income. Mortgage REITs originate, buy and/or sell mortgages for real estate property owners. Revenues primarily come from interest earned off the mortgages. Hybrid REITs invest in both equity REIT and mortgage REIT investment principles.
26 Slide 22 Asset Allocation and Diversification We ve talked about stocks, bonds, cash equivalents and real estate investments, but how do you know the best way to handle your portfolio? What is a portfolio anyway? A portfolio is just another term for all of your investments. And asset allocation and diversification are the keys to creating a balanced and well managed portfolio. Let s look at why asset allocation is so important.
27 Slide 23 Asset Allocation Each of the asset classes we ve discussed has their pros and cons. Stocks offer the greatest potential for long-term gain, but carry greater risk than bonds. Cash equivalents tend to be the least volatile, but risk not keeping up with inflation. So does that mean one is better than the other? No, it simply means that you should have a balance of different types of assets. Asset allocation is the process of dividing your portfolio among the different asset classes, and balancing risk and reward by apportioning a portfolio's assets according to your goals, risk tolerance and investment horizon. No single asset allocation model is right for everyone. For instance, a 25 year old who is investing for retirement may have an asset allocation of 100% in stocks because her time horizon is some 40 years away and she s willing to take a lot of risk. A 60 year old who s nearing retirement may have an asset allocation that s 40% stocks, 50% bonds, and 10% cash equivalents because he wants to reduce some of his risk. People tend to change their asset allocations as they near their financial objectives.
28 Slide 24 Rebalancing Assets A key to successful asset allocation is its maintenance. Rebalancing requires the periodic purchase and sale of investments to maintain the original asset weightings. For example, remember our 60 year old who had determined his portfolio should be 40% stocks, 50% bonds, and 10% cash equivalents? If his stock holdings were to outperform his other assets, his allocation might be 49% stocks, 46% bonds, and 5% cash. To rebalance his portfolio, he would sell 9% of his stocks and distribute the proceeds into bonds and cash, realigning his portfolio with his original strategy. Rebalancing helps you stick with your plan, regardless of what the markets do.
29 Slide 25 Diversification Do you remember when your mother said, don t put all your eggs in one basket? Mom may not have known it, but she was giving you a valuable lesson about investing. You could buy the stock of one company, but if it suffers a financial setback, you could lose money. Diversification is a risk management technique that mixes a wide variety of investments within a portfolio. It involves distributing your money among different securities, sectors, industries, and strategies within a number of asset classes. It should be noted that diversification of an investment portfolio does not assure a profit and doesn t protect against loss in a declining market.
30 Slide 26 Rates of Return - 500/1000 $500 = 50% Return $1500 $1000 As you invest, you not only want to think about asset allocation and diversification, you also want to consider your potential return. Return is what you get back on an investment, expressed as a percentage of that investment amount. Let s look at an example. If you invested $1000 in a stock and later sold it for $1500, you would ve made $500. Your gain of $500 divided by the original investment amount of $1000 is a 50% return. But investments don t always make money. The difference between a purchase price and sales price can be either a capital gain (if you make money) or a capital loss (if you lose money). But any interest or dividends you ve received can also be included. Total return provides a good measure of performance and consists of all price changes and income received over a specific period of time.
31 Slide 27 Actual Rate of Return An investment s actual return is what the investment earned for a given time period. But your personal rate of return may be different, depending on timing. For instance, let s say a stock increases 25% in value in one year. But you bought the stock on December 1 st, so your return would only be the stock s performance during the month of December. This means that your personal return is the same as the investment s actual return only if you buy and hold the investment for the same time period.
32 Slide 28 Funds You now know what your investment goals are and what comprises a balanced and well managed portfolio. But there s still a lot of information out there and a lot of choices. Do you have to do it all by yourself? Of course not. That s where funds come in. Mutual funds serve individual shareholders. Another type of fund, collective trusts, are formed by institutional investors, such as employers who sponsor retirement plans. Let s look at their common characteristics.
33 Slide 29 Fund Management It would be very difficult for the average person to compile a diversified portfolio and to manage it. You'd need to research thousands of possible investments and buy and sell them. It would be a full time job and require a lot of money! Funds allow thousands of investors to pool their money under professional management. Fund managers use the money to invest in securities, which they think are appropriate to achieve the goals of their funds. Each investor shares in the gains or losses of the fund.
34 Slide 30 PROPERTIES Allow user to leave interaction: Show Next Slide Button: Completion Button Label: Anytime Show always Next Slide There are all types of funds, many of which are invested in the types of stocks, bonds, and cash instruments that we learned about earlier in this module. There are some funds that combine securities from all three asset classes. Click on each button to learn about the types of funds. Asset Allocation Funds - An asset allocation fund is a single fund that invests in a variety of securities in different asset classes. Balanced Funds - Balanced funds invest in both stocks and bonds, usually in specific weightings, such as 50% stocks and 50% bonds. Index Funds - Index funds attempt to track the performance of various market indices such as the Standard & Poor s 500 or the Russell Index fund investors are typically seeking to track the market s performance, not beat it. The fees are lower for index funds than they are for funds that are actively managed, where the manager is trying to outperform the market. Actively Managed Funds Actively managed funds seek to outperform the total return performance of various market indices. The fund s management teams engage in regular indepth research on individual securities within a particular area of focus. They tend to have higher fees than index funds.
35
36 Slide 31 Fund Fees Transaction Fees On-going Fees When you re trying to determine where to invest your money, it s important to pay attention to the fees charged by funds. You don t want to spend money unnecessarily and have costs eat into your returns. Fees can be broken into two general categories: transaction fees and on-going fees. While on-going fees are charged for all funds, transaction fees can occur when you re either buying or selling shares in a fund. To learn more about these types of fees, click on either of the pictures to get started.
37 Slide 32 Transaction Fees Return Transaction fees, often referred to as loads, are used to compensate brokers and other salespeople for selling the fund. Loads typically come in either front-end or back-end. A front-end load occurs when you purchase shares in a mutual fund. The commission is deducted from your purchase money. For instance, if you give a salesperson $1000 to purchase shares in a fund and there is a 5% front-end load, you will actually invest $950 and the salesperson will be paid $50. A back-end load is typically assessed if you sell your shares within a specific timeframe. It might begin at 5% and then decrease over time, so that at the end of the specified period, you wouldn t pay anything if you sell your shares. Not every fund has these types of fees and there s no evidence that funds that have these costs perform any better than those that don t. To compare transaction fees to on-going fees, click Return. If you ve finished, click the next button at the bottom of the screen to advance.
38 Slide 33 Fund Fees Transaction Fees On-going Fees Now click on the picture of the on-going fees.
39 Slide 34 On-going Fees Return On-going fees are expressed as an expense ratio. Ongoing expenses include but are not limited to investment management, custody, audit, and other types of fund administrative costs. Finally, a 12b-1 fee may be assessed for advertisement and marketing costs. To compare on-going fees to transaction fees, click Return. If you ve finished, click the next button at the bottom of the screen to advance.
40 Slide 35 Fund Fees Transaction Fees On-going Fees Now click on the picture of the transaction fees.
41 Slide 36 Prospectus Before you invest, you ll want to do your research. If you invest in a mutual fund you can learn about a fund s fee structure, as well as other information in a fund s prospectus. The prospectus is a detailed document that funds are required to provide to their customers. The document states the fund s objectives and risks, as well as information about its management. It outlines how the fund operates, discussing its fees, distribution policy, and its investment strategy. The prospectus will also provide annualized performance returns for the past 1-, 5-, and 10-year periods.
42 Slide 37 Investments On the Web Financial Literacy You ve done it! You re ready for the world of investing and you know how to make your money work for you. You have the tools to make choices about the right types of investments for you. You understand why asset allocation and diversification are so important to a well managed portfolio. And you learned about managing your investments with funds. Understanding your investment options is just one more step in financial literacy. For more information about Investing, click the On the Web link to go to MoneyWatch.com. To view our other Financial Literacy presentations, select the Financial Literacy link.
GLOSSARY OF INVESTMENT-RELATED TERMS FOR NATIONAL ELECTRICAL ANNUITY PLAN PARTICIPANTS
GLOSSARY OF INVESTMENT-RELATED TERMS FOR NATIONAL ELECTRICAL ANNUITY PLAN PARTICIPANTS General Information This Glossary of Investment-Related Terms for National Electrical Annuity Plan Participants (the
More informationBond Mutual Funds. a guide to. A bond mutual fund is an investment company. that pools money from shareholders and invests
a guide to Bond Mutual Funds A bond mutual fund is an investment company that pools money from shareholders and invests primarily in a diversified portfolio of bonds. Table of Contents What Is a Bond?...
More informationRETIREMENT INSIGHTS. Is It Time to Rebalance Your Plan Investments? Mutual Fund Categories: A Primer for New Investors
RETIREMENT INSIGHTS July 2014 Your HFS Team Heffernan Financial Services 188 Spear Street, Suite 550 San Francisco, CA 94105 800-437-0045 rebeccat@heffgroup.com www.heffgroupfs.com CA Insurance Lic# 0I18899
More informationGeneral Investment-Related Terms
General Investment-Related Terms 12b-1 Fee: A fee assessed on certain mutual funds or share classes permitted under an SEC rule to help cover the costs associated with marketing and selling the fund. 12b-1
More informationSample Glossary Of Investment-Related Terms For Disclosures To Retirement Plan Participants
Sample Glossary Of Investment-Related Terms For Disclosures To Retirement Plan Participants Version 1.01 April 26, 2012 PART 1 General Investment-Related Terms 12b-1 Fee: A fee assessed on certain mutual
More informationINVESTMENT TERM GLOSSARY
A Accrued Interest - Interest that has been earned but not yet credited to a bond or other fixed-income investment, such as a certificate of deposit. Active Management The use of professional investment
More informationWith interest rates at historically low levels, and the U.S. economy showing continued strength,
Managing Interest Rate Risk in Your Bond Holdings THE RIGHT STRATEGY MAY HELP FIXED INCOME PORTFOLIOS DURING PERIODS OF RISING INTEREST RATES. With interest rates at historically low levels, and the U.S.
More informationThe Young Investor s Guide To Understanding The Terms Used In Investing.
The Young Investor s Guide To Understanding The Terms Used In Investing. The Young Investor Dictionary compliments of Integrity Mutual Funds. YOUNG INVESTOR DICTIONARY Asset Something of value. The property
More informationInvestments. To meet your financial goals you will need a plan. Part of this plan is to create a portfolio.
Investments To meet your financial goals you will need a plan. Part of this plan is to create a portfolio. This portfolio reflects what type of risk you are willing to accept. Within this portfolio, you
More informationNAME: CLASS PERIOD: An Introduction to Stocks and Bonds
22.1 An Introduction to Stocks and Bonds There are many different ways to invest your money. Each of them has different levels of risk and potential return. Stocks and bonds are two common types of financial
More informationA GUIDE TO MUTUAL FUND INVESTING
Many investors turn to mutual funds to meet their long-term financial goals. They offer the benefits of diversification and professional management and are seen as an easy and efficient way to invest.
More informationPersonal Financial Literacy Vocabulary
TEACHER GUIDE 5.3 SAVING AND INVESTING PAGE 1 Standard 5: The student will analyze the costs and benefits of saving and investing. Saving and Investing Tools Priority Academic Student Skills Personal Financial
More information1 2 3 4 5 6 Say that you need to generate $4,000 per month in retirement and $1,000 will come from social security and you have no other pension. This leaves $3,000 per month, or $36,000 per year, that
More informationInvesting. Mutual Fund. ABC Company 123 Main Street Anywhere, USA 12345 www.sampleabccompany.com 800.123.4567
Mutual Fund Investing Your promotional imprint here and/or back cover. ABC Company 123 Main Street Anywhere, USA 12345 www.sampleabccompany.com 800.123.4567 Mutual funds are one of the most popular ways
More informationMutual Funds Made Simple. Brighten your future with investments
Mutual Funds Made Simple Brighten your future with investments About Invesco Aim When it comes to investing, your sights are set on a financial summit a college diploma, new home or secure retirement.
More informationSaving and Investing Wisely
Quest Capital Management, Inc. 8235 Douglas Avenue Suite 500 Dallas, TX 75225 214-691-6090 info@questadvisor.com www.questadvisor.com Investing Basics Saving and Investing Wisely Saving builds a foundation
More informationInvesting Basics and Your Retirement
Christian Financial Credit Union Roberto Rizza, CRPC Financial Advisor CUSO Financial Services, LP 18441 Utica Road Roseville, MI 48066 586-445-3651 rrizza@cfcumail.org www.christianfinancialcu.org Investing
More informationSaving and Investing Tools
STUDENT MODULE 5.3 SAVING AND INVESTING PAGE 1 Standard 5: The student will analyze the costs and benefits of saving and investing. Saving and Investing Tools Miley and Hanna are both turning 16 this year
More informationUNDERSTANDING MUTUAL FUNDS. TC83038(0215)3 Cat No 64095(0215)
UNDERSTANDING MUTUAL FUNDS 10 % TC83038(0215)3 Cat No 64095(0215) Investing your hard earned money comes with some big decisions. So, before you invest, you need to ask yourself a simple question: What
More informationGlossary of Investment Terms
online report consulting group Glossary of Investment Terms glossary of terms actively managed investment Relies on the expertise of a portfolio manager to choose the investment s holdings in an attempt
More informationYour Guide to Investing in the UNC Retirement Programs
Your Guide to in the UNC Retirement Programs > Appalachian State University East Carolina University Elizabeth City State University Fayetteville State University North Carolina A&T State University North
More informationSample Glossary Of Investment-Related Terms For Disclosures To Retirement Plan Participants. Version 1.01
Sample Glossary Of Investment-Related Terms For Disclosures To Retirement Plan Participants Version 1.01 April 26, 2012 General Information SAMPLE GLOSSARY OF INVESTMENT-RELATED TERMS FOR DISCLOSURES TO
More informationBasic Investment Education
Disclaimer: The information provided below is for information purposes only - it is not investment advice. If you have any questions about your own personal financial situation, you should consult with
More informationInvesting Basics. Bank of the Bluegrass Wealth Management 215 Southland Drive Lexington, KY 40383 859-233-4500
Bank of the Bluegrass Wealth Management 215 Southland Drive Lexington, KY 40383 859-233-4500 Investing Basics 2013 Page 1 of 9, see disclaimer on final page Saving and Investing Wisely The impact of 3%
More informationChapter 1 The Financial Assessment
Chapter 1 The Financial Assessment 64 P leasant S treet P hon e: ( 415) 830-52 44 Copyright 2007-2009 Harrison Lazarus Advisors, Inc. All Rights Reserved Page 1 of 15 It doesn t matter where you are in
More informationInvesting Offers Rewards And Poses Risks. Investment Basics: The Power of Compounding. How Do Americans Invest Their Savings? (HA)
How Do Americans Invest Their Savings? (HA) Learning how to save money for future use is an important first step in reaching your long-term goals. But saving alone is not enough. You will also need to
More informationMutual Funds 101. What is a Mutual Fund?
Mutual Funds 101 So you re looking to get into the investment game? Great! Mutual funds are a good investment option. But before you invest, make sure to do your research! You would never go to a car dealership,
More informationMutual Fund Investing Exam Study Guide
Mutual Fund Investing Exam Study Guide This document contains the questions that will be included in the final exam, in the order that they will be asked. When you have studied the course materials, reviewed
More informationPrinciples for investment success. We believe you will give yourself the best chance of investment success if you focus on what you can control
Principles for investment success We believe you will give yourself the best chance of investment success if you focus on what you can control Important information This guide has been produced for educational
More informationSaving and Investing. Chapter 11 Section Main Menu
Saving and Investing How does investing contribute to the free enterprise system? How does the financial system bring together savers and borrowers? How do financial intermediaries link savers and borrowers?
More informationInvestor Knowledge Quiz. A helpful guide to learning more about investing.
Investor Knowledge Quiz A helpful guide to learning more about investing. An overwhelming 97 percent of investors realize they need to be better informed about investing. And nearly half said they could
More informationBalanced fund: A mutual fund with a mix of stocks and bonds. It offers safety of principal, regular income and modest growth.
Wealth for Life Glossary Aggressive growth fund: A mutual fund that aims for the highest capital gains. They often invest in smaller emerging companies that offer maximum growth potential. Adjustable Rate
More informationasset classes Understanding Equities Property Bonds Cash
NEWSLETTER Understanding asset classes High return Property FIND OUT MORE Equities FIND OUT MORE Bonds FIND OUT MORE Cash FIND OUT MORE Low risk High risk Asset classes are building blocks of any investment.
More informationINVESTING EFFECTIVELY TO HELP MEET YOUR GOALS. MUTUAL FUNDS
{ } INVESTING EFFECTIVELY TO HELP MEET YOUR GOALS. MUTUAL FUNDS 1 MUTUAL FUNDS: STRENGTH IN NUMBERS You like to think about retirement; that time when you will be able to relax and enjoy life the way it
More informationInvestment Guide Funds offered through the Washington State Investment Board
Investment Guide Funds offered through the Washington State Investment Board Investing Overview Asset allocation 2 Two investment approaches 2 Build and Monitor 3 One-Step 3 Diversification 4 Trading restrictions
More informationOverview of Your TIAA-CREF Investment Solutions SM Accounts
Overview of Your TIAA-CREF Investment Solutions SM Accounts TIAA-CREF Investment Solutions SM now offers you nine mutual funds in addition to our fixed and variable annuity accounts. TIAA-CREF Investment
More informationNPH Fixed Income Research Update. Bob Downing, CFA. NPH Senior Investment & Due Diligence Analyst
White Paper: NPH Fixed Income Research Update Authored By: Bob Downing, CFA NPH Senior Investment & Due Diligence Analyst National Planning Holdings, Inc. Due Diligence Department National Planning Holdings,
More informationInvesting in Bonds - An Introduction
Investing in Bonds - An Introduction By: Scott A. Bishop, CPA, CFP, and Director of Financial Planning What are bonds? Bonds, sometimes called debt instruments or fixed-income securities, are essentially
More informationProspectus Socially Responsible Funds
Prospectus Socially Responsible Funds Calvert Social Investment Fund (CSIF) Balanced Portfolio Equity Portfolio Enhanced Equity Portfolio Bond Portfolio Money Market Portfolio Calvert Social Index Fund
More informationINVESTMENT TRANSLATED INTO HUMAN WORDS
INVESTMENT JARGON TRANSLATED INTO HUMAN WORDS Hi, The world of finance loves jargon, but it s overly confusing. Let s clear the air. Here s a concise walk-through of terms that are common, but often not
More informationMaking Sense of Market Volatility: Retirement Planning Strategies for the Everyday Investor. October, 2008
Making Sense of Market Volatility: Retirement Planning Strategies for the Everyday Investor October, 2008 1 Market Ups and Downs Recent news is full of anxiety-causing developments: Credit crunch Bank
More informationALLOCATION STRATEGIES A, C, & I SHARES PROSPECTUS August 1, 2015
ALLOCATION STRATEGIES A, C, & I SHARES PROSPECTUS August 1, 2015 Investment Adviser: RidgeWorth Investments A Shares C Shares I Shares Aggressive Growth Allocation Strategy SLAAX CLVLX CVMGX Conservative
More informationRISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO BONDS
INVESTING RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO BONDS Contents Explaining the world of bonds 3 So what are bonds? 3 Understanding the risks 4 Three words you need to know 4 Understanding
More informationShort-Term and Long-Term Investments Options
Slide 1 Slide 2 Short-Term and Long-Term Investments Options Slide 3 Module Objectives After completing this module you should be able to: Identify which saving instruments can help develop short-time
More informationINVESTING FOR LIFE S GOALS
TIAA-CREF LIFE GOALS SERIES INVESTING FOR LIFE S GOALS SAVING FOR MAJOR PURCHASES AND OBJECTIVES TIAA-CREF: FINANCIAL SERVICES FOR THE GREATER GOOD OUR COMMITMENT TIAA-CREF is dedicated to serving the
More informationINVESTMENT DICTIONARY
INVESTMENT DICTIONARY Annual Report An annual report is a document that offers information about the company s activities and operations and contains financial details, cash flow statement, profit and
More informationBOND FUNDS L SHARES. October 1, 2004
BOND FUNDS A SHARES L SHARES October 1, 2004 CLASSIC INSTITUTIONAL U.S. GOVERNMENT SECURITIES SUPER SHORT INCOME PLUS FUND FLORIDA TAX-EXEMPT BOND FUND GEORGIA TAX-EXEMPT BOND FUND HIGH INCOME FUND INVESTMENT
More informationMLC MasterKey Unit Trust Product Disclosure Statement (PDS)
MLC MasterKey Unit Trust Product Disclosure Statement (PDS) Preparation date 1 July 2014 Issued by MLC Investments Limited (MLC) ABN 30 002 641 661 AFSL 230705 This information is general and doesn t take
More informationFinancial Wellness & Education. Understanding mutual funds
Financial Wellness & Education Understanding mutual funds Benefits of mutual funds Foresters Financial Services provides everyday families and individuals with financial solutions, guidance and tools,
More informationBasic Investment Terms
Because money doesn t come with instructions.sm Robert C. Eddy, CFP Margaret F. Eddy, CFP Matthew B. Showley, CFP Basic Investment Terms ANNUITY A financial product sold by financial institutions pay out
More informationFULL DISCLOUSURE. IncomeClub, Inc. ("IncomeClub") owns and operates a website at www.incomeclub.co.
FULL DISCLOUSURE June,1 2015 GENERAL DISCLOUSURES IncomeClub, Inc. ("IncomeClub") owns and operates a website at www.incomeclub.co. IncomeClub is registered investment advisor with the Securities and Exchange
More informationWhat you will learn today. Different categories of investments Choosing your investment mix Common investor pitfalls Determining your next steps
Investing 101 What you will learn today Different categories of investments Choosing your investment mix Common investor pitfalls Determining your next steps 2 Asset Allocation One of Your Most Important
More informationYOUR GUIDE TO GETTING STARTED
George Mason University Cash Match Plan (#72170) Invest in your retirement and yourself today, with help from The George Mason 401(a) Match Plan and Fidelity. YOUR GUIDE TO GETTING STARTED Invest some
More informationEXPLORE. Investment Planning Planning for Financial Security SAVING : INVESTING : PLANNING
EXPLORE Investment Planning Planning for Financial Security SAVING : INVESTING : PLANNING About this seminar Presentation > Provides comprehensive education > Includes action steps > Provides opportunity
More informationADVISORSHARES YIELDPRO ETF (NASDAQ Ticker: YPRO) SUMMARY PROSPECTUS November 1, 2015
ADVISORSHARES YIELDPRO ETF (NASDAQ Ticker: YPRO) SUMMARY PROSPECTUS November 1, 2015 Before you invest in the AdvisorShares Fund, you may want to review the Fund s prospectus and statement of additional
More informationA Guide To DEFINED FOCUSED DISCIPLINED
A Guide To F I R S T T R U S T U N I T I N V E S T M E N T T R U S T S DEFINED FOCUSED DISCIPLINED W H A T I S A U N I T I N V E S T M E N T T R U S T? U I T F E A T U R E S A unit investment trust or
More informationShaffer Capital June 1, 2013
Shaffer Capital Matthew E. Shaffer, MBA, CFP President & Director of Wealth Mgmt 550 Polaris Parkway Suite 540 Westerville, OH 43082 614-891-1200 x11 877-891-1213 mshaffer@shaffercapital.net www.shaffercapital.net
More informationNet Asset Value (NAV) Classification of Mutual Funds. Load Funds and No-Load Funds. Classification of Mutual Funds
CHAPTER 16 Why Investors Purchase Mutual Funds Investing in Mutual Funds Personal Finance 7e Kapoor Dlabay Hughes Professional management. Who is the fund s manager? Managers can change. Diversification.
More informationInvestments GUIDE TO FUND RISKS
Investments GUIDE TO FUND RISKS CONTENTS Making sense of risk 3 General risks 5 Fund specific risks 6 Useful definitions 9 2 MAKING SENSE OF RISK Understanding all the risks involved when selecting an
More informationInsurance Dedicated Funds: Variable Insurance Trusts
At a Glance September 2015 Insurance Dedicated Funds: Variable Insurance Trusts Our goal at GSAM is to meet the financial goals of investors worldwide, now and in the future, with innovative investment
More informationU.S. Treasury Securities
U.S. Treasury Securities U.S. Treasury Securities 4.6 Nonmarketable To help finance its operations, the U.S. government from time to time borrows money by selling investors a variety of debt securities
More informationsmart Two Paths to Investing for Retirement Which one is right for you? Massachusetts Deferred Compensation SMART Plan INVEST
smart S A V E M O N E Y A N D R E T I R E T O M O R R O W INVEST Two Paths to Investing for Retirement Which one is right for you? Massachusetts Deferred Compensation SMART Plan Office of the State Treasurer
More informationUnit Investment Trusts
a guide to Unit Investment Trusts A unit investment trust (UIT) is a registered investment company that buys and holds a generally fixed portfolio of stocks, bonds, or other securities. Table of Contents
More informationI. Introduction. II. Financial Markets (Direct Finance) A. How the Financial Market Works. B. The Debt Market (Bond Market)
University of California, Merced EC 121-Money and Banking Chapter 2 Lecture otes Professor Jason Lee I. Introduction In economics, investment is defined as an increase in the capital stock. This is important
More informationInvestment risk Balancing investment risk and potential reward
Investment risk Balancing investment risk and potential reward This guide has been produced for educational purposes only and should not be regarded as a substitute for investment advice. Vanguard Asset
More informationinvesting mutual funds
investing mutual funds our mission The mission of The USAA Educational Foundation is to help consumers make informed decisions by providing information on financial management, safety concerns and significant
More informationSPDR Wells Fargo Preferred Stock ETF
SPDR Wells Fargo Preferred Stock ETF Summary Prospectus-October 31, 2015 PSK (NYSE Ticker) Before you invest in the SPDR Wells Fargo Preferred Stock ETF (the Fund ), you may want to review the Fund's prospectus
More informationAsset allocation A key component of a successful investment strategy
Asset allocation A key component of a successful investment strategy This guide has been produced for educational purposes only and should not be regarded as a substitute for investment advice. Vanguard
More informationIU Retirement Plan (57524) Start investing in yourself today, with help from IU Retirement Plan and Fidelity.
IU Retirement Plan (57524) Start investing in yourself today, with help from IU Retirement Plan and Fidelity. Invest some of what you earn today for what you plan to accomplish tomorrow. Dear Indiana University
More informationINVESTING RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO
INVESTING RISK EQUITIES BONDS PROPERTY INCOME SPIN-FREE GUIDE TO INVESTING Contents Helping you reach your financial goals 3 Introducing the different types of investments 4 Where could you invest? 4 Where
More informationMutual Funds. What s a mutual fund? Consider investing in mutual funds. Diversification Professional management More free time
Mutual Funds Diversification Professional management More free time Consider investing in mutual funds Easy way to get started investing Only takes a small initial amount You get professional management
More informationCHOOSING YOUR INVESTMENTS
CHOOSING YOUR INVESTMENTS FOR ASSISTANCE GO ONLINE For more information on your retirement plan, investment education, retirement planning tools and more, please go to www.tiaa-cref.org/carnegiemellon.
More informationINVESTING IN MORTGAGE FUNDS?
INVESTING IN MORTGAGE FUNDS? Independent guide for investors about unlisted mortgage funds Mortgage funds can also be called mortgage trusts or mortgage schemes. About ASIC The Australian Securities and
More informationTHE STOCK MARKET GAME GLOSSARY
THE STOCK MARKET GAME GLOSSARY Accounting: A method of recording a company s financial activity and arranging the information in reports that make the information understandable. Accounts payable: The
More informationNuveen Intelligent Risk Conservative Allocation Fund will be liquidated after the close of business on June 24, 2016.
NUVEEN INTELLIGENT RISK CONSERVATIVE ALLOCATION FUND SUPPLEMENT DATED APRIL 18, 2016 TO THE SUMMARY PROSPECTUS DATED DECEMBER 31, 2015 Nuveen Intelligent Risk Conservative Allocation Fund will be liquidated
More informationHow to manage your fixed-income investments when interest rates rise
How to manage your fixed-income investments when interest rates rise April 2015 Begin by taking a thoughtful approach. Consider total return and not just current yields. Make sure you maintain portfolio-wide
More informationDetermining your investment mix
Determining your investment mix Ten minutes from now, you could know your investment mix. And if your goal is to choose investment options that you can be comfortable with, this is an important step. The
More informationThe easy way to save for your retirement
The easy way to save for your retirement If you want to live comfortably during your retirement, you really can t afford to wait to begin saving for that goal. And now that your employer is offering the
More informationThe essentials of investing for retirement.
The essentials of investing for retirement. Fidelity has been helping people invest for retirement for more than 65 years. Some investors use our actively managed and index mutual funds. Some use our powerful
More informationStandard 5: The student will analyze the costs and benefits of saving and investing.
STUDENT MODULE 5.4 SAVING AND INVESTING PAGE 1 Standard 5: The student will analyze the costs and benefits of saving and investing. Time is Money Aunt May and Uncle Augusto stop at April s house for a
More informationCity National Rochdale High Yield Bond Fund a series of City National Rochdale Funds
City National Rochdale High Yield Bond Fund a series of City National Rochdale Funds SUMMARY PROSPECTUS DATED JANUARY 31, 2015, AS SUPPLEMENTED MAY 1, 2015 Class: Institutional Class Servicing Class Class
More informationPersonal Risk Profile and Asset Allocation A Guide to Investing Variable Product Series. Building your future with a secure partner
Personal Risk Profile and Asset Allocation A Guide to Investing Variable Product Series Building your future with a secure partner SM Kansas City Life Insurance Company Investment basics Taking personal
More informationIs it time to hire a professional to manage your bonds?
Is it time to hire a professional to manage your bonds? Today s bond markets are more complex Finding the right bonds can be difficult. The bond markets are large and complex, and it takes a lot of homework
More informationYour Future Begins Today
JUNE 2014 Your Future Begins Today A practical guide to retirement investing TABLE OF CONTENTS Your employer has teamed with Morgan Stanley to provide you with a premium retirement savings program. What
More informationStart investing in yourself today, with help from the University System of Maryland Supplemental 403(b) Plan and Fidelity.
University System of Maryland Supplemental 403(b) Plan (#65612) Start investing in yourself today, with help from the University System of Maryland Supplemental 403(b) Plan and Fidelity. Invest some of
More informationDetermining your investment mix.
Determining your investment mix. Ten minutes from now, you could know your investment mix: And if your goal is to choose investment options that you can be comfortable with, this is an important step.
More informationINVESTING MADE SIMPLE
Investing Fundamentals INVESTING MADE SIMPLE AN EDUCATIONAL GUIDE FOR EVERY INVESTOR. INVEST WITH CONFIDENCE. HuntingtonFunds.com 1 1 Your Guide to the Basics of Investing Through Mutual Funds Mutual funds
More informationPRINCIPAL TRUST TARGET DATE FUNDS SUMMARY
Date Collective Investment s PRINCIPAL TRUST TARGET DATE FUNDS SUMMARY The date of this summary is October 28, 2015 This summary includes key information about the Trust Date Collective Investment s (each
More informationSTEWARD FUNDS MANAGING WEALTH, PROTECTING VALUES SOCIALLY RESPONSIBLE SCREENED FUNDS. PROSPECTUS August 28, 2015
STEWARD FUNDS MANAGING WEALTH, PROTECTING VALUES SOCIALLY RESPONSIBLE SCREENED FUNDS Steward Large Cap Enhanced Index Fund Individual Class SEEKX Institutional Class SEECX Steward Small-Mid Cap Enhanced
More informationQ&A s. Would it be better to contribute to my Roth or traditional IRA this year? I have $5,000 which I could contribute.
Q&A s Question & Answer Categories: IRA IRA Investing Misc. Mutual funds & ETFs Other investments Would it be better to contribute to my Roth or traditional IRA this year? I have $5,000 which I could contribute.
More informationAON MASTER TRUST. Introduction to investments. aonmastertrust.com.au
AON MASTER TRUST Introduction to investments aonmastertrust.com.au CONTENTS Risk versus return... 3 Asset classes... 4 Defensive and growth asset classes... 5 Asset class performance... 6 Managing risk...
More informationFinancial Planning Basics Financial Planning Fundamentals
Financial Planning Basics Financial Planning Fundamentals An Overview of the Financial Planning Process The Ground to Cover Setting goals Budgeting Emergency fund Insurance Using credit Investing Tax planning
More informationINVESTMENTS. Brought to you by: State Treasurer Josh Mandel
INVESTMENTS 1 State Treasurer Josh Mandel Section I: Assessing Your Current Situation Section II: Setting Investment Goals / Timelines Section III: Determining Your Risk Tolerance Section IV: Asset Allocation
More information20 Keys to Being a Smarter Investor
20 Keys to Being a Smarter Investor The Financial Planning Association (FPA ) is the leadership and advocacy organization connecting those who provide, support and benefit from professional financial planning.
More informationSaving and Investing. Being an educated investor will help enable you to become financially sound. Chapters 30 and 31
Saving and Investing Being an educated investor will help enable you to become financially sound Chapters 30 and 31 Essential Questions How do you know when to save and when to invest? What are some reasons
More informationInvesting in mortgage schemes?
Investing in mortgage schemes? Independent guide for investors about unlisted mortgage schemes This guide is for you, whether you re an experienced investor or just starting out. Key tips from ASIC about
More informationBrown Advisory Strategic Bond Fund Class/Ticker: Institutional Shares / (Not Available for Sale)
Summary Prospectus October 30, 2015 Brown Advisory Strategic Bond Fund Class/Ticker: Institutional Shares / (Not Available for Sale) Before you invest, you may want to review the Fund s Prospectus, which
More informationInvesting in Mutual Funds
Investing in Mutual Funds C H A P T E R 17 Barb Branson thought she knew a good thing when she saw it. After researching some mutual funds, she picked one that had a great five-year track record. With
More informationOptional Asset Allocation program for participants
Richard Gagne Retirement Security Education 0207662 What is GoalMaker? Optional Asset Allocation program for participants Uses professional asset allocation modeling based on portfolios created by Morningstar
More informationFIXED INCOME STRATEGIES FOR A RISING INTEREST RATE ENVIRONMENT
FIXED INCOME STRATEGIES FOR A RISING INTEREST RATE ENVIRONMENT John Donovan, Head of Fixed Income and Trading As the Federal Reserve and other central banks wind down their fiscal stimulus programs, we
More information