1. Diane invests $500 today in an account earning 7%. How much will it be worth in:

Size: px
Start display at page:

Download "1. Diane invests $500 today in an account earning 7%. How much will it be worth in:"

Transcription

1 SM3-1: Dollars and Sense Purpose: Practice what you have learned about the time value of money by calculating the responses for the following situations. Directions: After dividing into groups of four to five students, use a financial function calculator, a spreadsheet program with time-value-of-money functions, or financial function calculators on the Internet to solve the following time-value-of-money exercises. 1. Diane invests $500 today in an account earning 7%. How much will it be worth in: 5 years? 10 years? 20 years? 2. Same facts as #1, except Diane finds an account earning 10%. How much will it be worth in: 5 years? 10 years? 20 years? 3. Elaine needs to save $4,000 in four years. If she can set aside $1,000 today, what rate of return does she need on her account? 4. Same facts as in #3, except now Elaine can also set aside $50 per month. What rate of return does she need on her account? 5. Frank wants to buy a $10,000 car. The car dealer offers him financing of 60 payments at 9% interest. What will his payments be assuming he pays $0 down? 6. Same facts as #5, except the dealer also offers 48 payments at 8%. Now what will Frank s payments be assuming he pays $0 down? 7. Gayle has a credit card with a $500 balance on it and a 19% interest rate. If she wants to pay off her card in two years, what will her monthly payments be? How much interest will she pay? 8. Same facts as #7, except now the balance is $2,500. What will Gayle s monthly payments be? How much interest will she pay? Name Date SM3-1: Dollars and Sense pg. 1 of 1

2 SM3-1: Dollars and Sense (Instructor) Purpose: Practice what you have learned about the time value of money by calculating the responses for the following situations. Directions: After dividing into groups of four to five students, use a financial function calculator, a spreadsheet program with time-value-of-money functions, or financial function calculators on the Internet to solve the following time-value-of-money exercises. 1. Diane invests $500 today in an account earning 7%. How much will it be worth in: 5 years? $ years? $ years? $1,935 2 Same facts as #1, except Diane finds an account earning 10%. How much will it be worth in: 5 years? $ years? $1, years? $3, Elaine needs to save $4,000 in four years. If she can set aside $1,000 today, what rate of return does she need on her account? 41% 4. Same facts as in #3, except now Elaine can also set aside $50 per month. What rate of return does she need on her account? 24% 5. Frank wants to buy a $10,000 car. The car dealer offers him financing of 60 payments at 9% interest. What will his payments be assuming he pays $0 down? $ Same facts as #5, except the dealer also offers 48 payments at 8%. Now what will Frank s payments be assuming he pays $0 down? $ Gayle has a credit card with a $500 balance on it and a 19% interest rate. If she wants to pay off her card in two years, what will her monthly payments be? $25.20 How much interest will she pay? $ ($25.20 x 24 = $604.80, less the $500 original balance = $104.80) 8. Same facts as #7, except now the balance is $2,500. What will Gayle s monthly payments be? $ How much interest will she pay? $ ($ x 24 = $3,024.48, less the $2,500 original balance = $524.48) After students have completed the activity, lead a discussion with the following questions: 1. Did any of the answers to these problems surprise you? Which ones and why? 2. How does solving problems in a group differ from doing it on your own? 3. How would you feel about teaching someone else how to solve a time-value-of-money problem? SM3-1: Dollars and Sense (Instructor) pg. 1 of 1

3 SM3-2: Are You a Risk-Taker? Purpose: Assess your personal risk level by completing the questionnaire. Directions, Part I: Take the following quiz to find out if you are a conservative, average, or aggressive investor. Mark your choice in Column B. Column A Point(s) Column B Choice 1. When it comes to making the best choice, my luck has been: a. Rotten b. Average c. Better than average d. Terrific 2. Most of the good things that have happened to me have been because: a. I planned them b. I was able to exploit opportunities that arose c. I was in the right place at the right time d. Someone looks out for me 3. If a stock doubled in price five months after I bought it, I would: a. Sell all my stock b. Sell half my stock c. Sit tight d. Buy more shares 4. Making decisions about saving and investing on my own is something that I: a. Never do b. Occasionally do c. Often do d. Almost always do 5. If my boss were to tell me to do something at work that I know is a bad idea, I would: a. Say directly that it was a mistake b. Get co-workers to join me in opposing the idea c. Do nothing unless the boss brings it up again d. Do it anyway 6. For me to put 10% of all of my savings and belongings into a new venture that has a 75% chance of success, the potential profit would have to be at least: a. The same as the amount I had risked in investing in the venture b Three times the amount c. Five times the amount d. No amount would be worth the risk 7. When I see people involved in sports such as hang gliding or bungee jumping, I: a. Think they are idiots b. Admire them but would never participate c. Wish I could try such sports just once to see what they are like d. Think seriously about participating myself Name Date SM3-2: Are You a Risk-Taker? pg. 1 of 2

4 SM3-2: Are You a Risk-Taker? continued Column A Point(s) Column B Choice 8. If I held a finalist ticket in a lottery with a 1 in 5 chance of winning the $50,000 prize, the smallest amount I would consider selling my ticket for before the lottery drawing would be: a. $30,000 b. $17,000 c. $13,000 d. $10, In the past, I have spent $10 on one or more of the following activities: bet on my own recreational activities such as golf or poker, or bet on professional sports. (Choose the one that best applies.) a. I have done two or more of these in the past year b. I have done one of these in the past year c. I have done one of these a few times d. I have never done any of these 10. If I had to make a critical decision involving a large amount of money, I would probably do one or more of the following things: (Circle all that apply.) a. Delay the decision b. Have someone else make the decision for me c. Ask others to share in the decision d. Plan strategies that would minimize any loss Total Points Directions, Part II: For each question, write the points in Column A according to the following scales. For questions 1, 3, and 4: a. = 1 point b. = 2 points c. = 3 points d. = 4 points For questions 2, 6, 8, and 9: a. = 4 points b. = 3 points c. = 2 points d. = 1 point For questions 5 and 7: No matter what you chose, do not give yourself any points. Moral courage and physical bravery are not associated with your tolerance for investment risk. For question 10: Count up the number of items you circled. Subtract that number from 5, and this is the score you receive for this question. What your score means: 8 to 16 points Conservative investor; you are willing to take few risks 17 to 24 points Average investor; you are willing to take average risks 25 to 32 points Aggressive investor; you are willing to take greater-than-average risks Adapted and reprinted with permission from University of Idaho Extension SM3-2: Are You a Risk-Taker? pg. 2 of 2

5 Assessment 3-2: Evaluation Multiple Choice (10 pts.): Read each item carefully; then select the best answer. Each answer is worth 1 pt. 1. The Rule of 72 is useful in calculating the a. interest an investor needs to earn to reach a goal. b. age of money. c. time required to double an investment. d. fluctuations of the stock market. 2. The basic rule of a risk-to-return relationship is that the a. lower the risk, the higher the return rate. b. higher the risk, the higher the return rate. c. higher the risk, the lower the return rate. d. two are not related. 3. Which one of the following types of investments has the lowest risk and lowest rate of return? a. Savings bonds b. Stocks c. Collectibles d. Real estate 4. Which one of the following types of investments has the highest risk and the highest potential rate of return? a. Money market mutual fund b. Stocks c. Government bonds d. Savings bonds 5. Which statement below is true about mutual funds? a. All mutual funds buy stocks b. Mutual funds offer guaranteed returns c. Mutual funds are convenient and professionally managed d. You can choose which stock to include in your mutual funds 6. The time value of money can best be explained using which one of the following concepts? a. The pay yourself first philosophy b. The risk-to-return relationship c. The dynamics of compounding d. The Rule of What approximate interest rate would an investor need to earn in order to double the value of an investment in six years? a. 6% b. 10% c. 12% d. 72% 8. If an investor can earn 9 percent on an investment, approximately how long will it take to double in value? a. 72 months b. 8 years c. 9 years d. 12 years Score /50 Name Date SM3-3: Assessment 3-2 Evaluation pg. 1 of 4

6 9. In the future, a dollar will be worth a. Less than a dollar today b. More than a dollar today c. The same as a dollar today 10. Monica adds $500 to her mutual fund every year for the next 10 years. Mason decides to wait 10 years when he knows he will have a lump sum of $5,000 to invest in a mutual fund. If both Monica and Mason earn on average a 7 percent rate of return, who will have the larger mutual fund balance in 20 years? a. Monica b. Mason c. They will have the same balance amount because they each invested the same amount at the same rate d. There is not enough information presented to make a prediction Ranking (16 pts.) (Each question is worth 8 pts.): Use what you learned in this unit and consider current trends to rank the investment options listed below. 11. In the left column, rank the investments highest (#1) to lowest (#8) to show how they compare according to the opportunity for reward. Potential for Earnings on investment Highest Potential Reward = 1 Lowest Potential Reward = 8 Investment Option Preferred Stock Certificates of Deposit U.S. Savings Bonds Commodities Growth Stocks Insured Savings Account Money Market Account Balanced Mutual Funds 12. In the left column, rank the investments highest (#1) to lowest (#8) to compare the risk of the investments. Potential Uncertainty of Anticipated Return on Investment Highest Potential Reward = 1 Lowest Potential Reward = 8 Investment Option Preferred Stock Certificates of Deposit U.S. Savings Bonds Commodities Growth Stocks Insured Savings Account Money Market Account Balanced Mutual Funds SM3-3: Assessment 3-2 Evaluation pg. 2 of 4

7 Matching (5 pts.): Read each statement carefully. Select the term that best matches the statement by writing the letter of the matching term. 13. Used to determine how long it takes for your money to double 14. One type of income investment a. Compounding b. Diversification c. Interest d. Investments 15. The mathematical relationship between time, money, a rate of return, and earnings growth 16. The process of earning interest on interest 17. Spreading your money among different savings and investments e. Rate of Return f. Rule of 72 g. Savings Account h. Stock i. Time Value of Money Short Answer (4 pts.): Read each item carefully; then write an answer based on what you learned about saving and investing in Unit 2. Each question is worth 2 pts. 18. What is the difference between saving and investing? 19. Explain why investment experts recommend diversifying investments. SM3-3: Assessment 3-2 Evaluation pg. 3 of 4

8 Essay (15 pts.): 20. In this unit, you have considered ways to use investments to help you meet financial goals. Use what you have learned to outline your investment plan for the near future. a. State your top three choices of investment options you will use in the next 10 years. b. Summarize your plan for how much, how often, and when you will invest. c. Justify why you have selected each option and how the option relates to your financial goals. Investment A:. Investment B: Investment C: SM3-3: Assessment 3-2 Evaluation pg. 4 of 4

9 Assessment 3-2: Evaluation Answer Key Multiple Choice (10 pts.): Each answer is worth 1 pt. 1. c. time required to double an investment [Objective B, p. 32] 2. b. higher the risk, the higher the return rate [Objective D, p ] 3. a. Savings bonds [Objective D, p. 33] 4. b. Stocks [Objective D, p. 33] 5. c. Mutual funds are convenient and professionally managed [Objectives C, D; p. 37] 6. c. The dynamics of compounding [Objective B, p. 30] 7. c. 12% [Objective B, p. 32] 8. b. 8 years [Objective B, p. 32] 9. a. Less than a dollar today [Objective B, p. 30] 10. a. Monica [she started investing early and has the advantage of compounding interest] [Objective B, pp ] Ranking (16 pts.). Each question is worth 8 pts. 11. [Objectives C, D; pp ] Potential for Earnings on investment Highest Potential Reward = 1 Lowest Potential Reward = 8 3 or or 4 Investment Option Preferred Stock Certificates of Deposit U.S. Savings Bonds Commodities Growth Stocks Insured Savings Account Money Market Account Balanced Mutual Funds 12. [Objectives C, D; pp ] Potential Uncertainty of Anticipated Return on Investment Highest Potential Reward = 1 Lowest Potential Reward = Investment Option Preferred Stock Certificates of Deposit U.S. Savings Bonds Commodities Growth Stocks Insured Savings Account Money Market Account Balanced Mutual Funds SM3-3: Assessment 3-2 Evaluation (Instructor) pg. 1 of 2

10 Matching (5 pts.). 13. f. Rule of 72 [Objective B, p. 32] 14. g. Savings Account [Objectives A, C; p. 35] 15. i. Time Value of Money [Objective B, pp ] 16. a. Compounding [Objective B, pp ] 17. b. Diversification [Objective E, p. 38] Short Answer (4 pts.). Each question is worth 2 pts. 18. Award 1 pt. for an accurate explanation that savings is money set aside to be used for a future purpose, typically to be readily available to pay for a short-term goal. Award 1 pt. for an accurate explanation that investing is money used for the possibility of growing in value, typically to meet longer-term goals. [Objective A, p. 28] 19. Award up to 2 pts. for an accurate explanation that diversification reduces investment risk (1 pt.) by investing in several different types of investments (1 pt.). [Objective E, p. 38] Essay (15 pts.). 20. [Objectives A, C, D, E; pp ] Investment A: Award up to 3 pts. for listing a realistic investment strategy to include product name (1 pt.), amount (1 pt.), and plan for frequency/timing of investment (1 pt.) Award 1 pt. for realistic explanation of how the named investment product relates to the student s personal intermediate and/or longterm financial goals. Award 1 pt. if the student accurately identifies valid features of the investment product such as risk, reward, convenience that are relevant to the student s plan and goals Investment B: Investment C: SM3-3: Assessment 3-2 Evaluation (Instructor) pg. 2 of 2

SCORE: /50 points. Multiple Choice: Read each item carefully; then select the best answer. [1 point each] ASSESSMENT 4-2 Module 4: Investing

SCORE: /50 points. Multiple Choice: Read each item carefully; then select the best answer. [1 point each] ASSESSMENT 4-2 Module 4: Investing NAME: SCORE: /50 points Matching: Read each statement carefully. Select the term that best matches the statement by writing the letter of the matching term in the blank. [1 point each] 1. 2. 3. 4. 5. 6.

More information

NAME: KEY SCORE: /50 points

NAME: KEY SCORE: /50 points NAME: KEY SCORE: /50 points Matching: Read each statement carefully. Select the term that best matches the statement by writing the letter of the matching term in the blank. [1 point each] F 1. A type

More information

Saving and Investing Standard 5 Assessment

Saving and Investing Standard 5 Assessment 1 Name: Class Period: Saving and Investing Directions: Circle the letter of the choice that BEST completes each statement. 1. Which of the following statement is TRUE? a. Savings and investing is only

More information

PRINCIPAL ASSET ALLOCATION QUESTIONNAIRES

PRINCIPAL ASSET ALLOCATION QUESTIONNAIRES PRINCIPAL ASSET ALLOCATION QUESTIONNAIRES FOR GROWTH OR INCOME INVESTORS ASSET ALLOCATION PRINCIPAL ASSET ALLOCATION FOR GROWTH OR INCOME INVESTORS Many ingredients go into the making of an effective investment

More information

Introduction to Investing Answer Key

Introduction to Investing Answer Key Page 1 Introduction to Investing Answer Key Introduction to Investing Note Taking Guide 1.12.1.L1: What is Investing? What is investing? The purchase of assets with the goal of increasing future income

More information

VOCABULARY INVESTING Student Worksheet

VOCABULARY INVESTING Student Worksheet Vocabulary Worksheet Page 1 Name Period VOCABULARY INVESTING Student Worksheet PRIMARY VOCABULARY 1. Savings: 2. Investments: 3. Investing: 4. Risk: 5. Return: 6. Liquidity: 7. Stocks: 8. Bonds: 9. Mutual

More information

Introduction to Investment Planning

Introduction to Investment Planning Dunhill Financial Advisors Bob Fitt Branch Manager 1190 Old York Road Suite B Hartsville, PA 18974 215-675-8440 (215) 675-8440 Robert.Fitt@RaymondJames.com www.dunhillfinancial.com Introduction to Investment

More information

TOP 5 SHORT-TERM INVESTMENTS

TOP 5 SHORT-TERM INVESTMENTS INVESTING: MAKING YOUR DOLLARS WORK FOR YOU TOP 5 SHORT-TERM INVESTMENTS A good financial strategy includes choosing a time frame for your various investments. Long-term investments to finance such projects

More information

INVESTOR GUIDE. Understand your investment options with Savings Plus

INVESTOR GUIDE. Understand your investment options with Savings Plus INVESTOR GUIDE Understand your investment options with Savings Plus Invest in your future As a participant in Savings Plus, you are both a saver and an investor. Every investor is different. Therefore,

More information

Mutual Funds Made Simple. Brighten your future with investments

Mutual 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 information

Standard 5: The student will analyze the costs and benefits of saving and investing.

Standard 5: The student will analyze the costs and benefits of saving and investing. TEACHER GUIDE 5.4 SAVING AND INVESTING PAGE 1 Standard 5: The student will analyze the costs and benefits of saving and investing. Time is Money Priority Academic Student Skills Personal Financial Literacy

More information

Determining your investment mix

Determining 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 information

FPA 8. 2003 Financial Planning Association

FPA 8. 2003 Financial Planning Association WHY IS INVESTING IMPORTANT? There is an important difference between saving and investing. You should save for short-term goals, but you need to invest for long-term goals. Saving is basically a form of

More information

Basic Investment Education

Basic Investment Education Basic Investment Education Mutual Funds How it works Money is pooled with the money of other investors who have the same, or mutual, investment goals Professional manager buys and sells according to investment

More information

Determining your investment mix.

Determining 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 information

Standard 12: The student will explain and evaluate the financial impact and consequences of gambling.

Standard 12: The student will explain and evaluate the financial impact and consequences of gambling. TEACHER GUIDE 12.1 GAMBLING PAGE 1 Standard 12: The student will explain and evaluate the financial impact and consequences of gambling. Risky Business Priority Academic Student Skills Personal Financial

More information

1. Overconfidence {health care discussion at JD s} 2. Biased Judgments. 3. Herding. 4. Loss Aversion

1. Overconfidence {health care discussion at JD s} 2. Biased Judgments. 3. Herding. 4. Loss Aversion In conditions of laissez-faire the avoidance of wide fluctuations in employment may, therefore, prove impossible without a far-reaching change in the psychology of investment markets such as there is no

More information

In the previous section, the investments were all made in one lump sum ; generally deposits are made on a regular basis over time.

In the previous section, the investments were all made in one lump sum ; generally deposits are made on a regular basis over time. 4B Savings Plans and Investments In the previous section, the investments were all made in one lump sum ; generally deposits are made on a regular basis over time. Savings Plan Formula (Regular Payments)

More information

Standard 5: The student will analyze the costs and benefits of saving and investing.

Standard 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 information

PART I TIME TO GET REAL

PART I TIME TO GET REAL PART I TIME TO GET REAL CHAPTER 1 GETTING RICH QUICK? The impossible dream? Many of us dream of overnight wealth. Even those who don t feel the need for much more money could, no doubt, find worthy charities

More information

Chapter 14: Savings and Investing Savings and Investing

Chapter 14: Savings and Investing Savings and Investing Savings and Investing Consumers can use any money left over from purchasing goods and services toward savings or investing. Saving means putting money aside for future use. Investing is using savings to

More information

Beginners Guide to Asset Allocation, Diversification, and Rebalancing

Beginners Guide to Asset Allocation, Diversification, and Rebalancing Beginners Guide to Asset Allocation, Diversification, and Rebalancing Even if you are new to investing, you may already know some of the most fundamental principles of sound investing. How did you learn

More information

All the materials and information included in this presentation is provided for educational and illustrative purposes only and is presented with the

All the materials and information included in this presentation is provided for educational and illustrative purposes only and is presented with the What s Your Story? All the materials and information included in this presentation is provided for educational and illustrative purposes only and is presented with the express understanding that Virginia

More information

Why Mutual Fund? AMFI - Investor Awareness Program (IAP) (Association of Mutual Funds in India)

Why Mutual Fund? AMFI - Investor Awareness Program (IAP) (Association of Mutual Funds in India) Why Mutual Fund? AMFI - Investor Awareness Program (IAP) (Association of Mutual Funds in India) Our Aspirations Typical Life cycle: Future Dreams The only way they can fulfill their dreams is by saving

More information

2. Percents Definition A percent means so many per hundred. Thirty percent is 30 out of 100. Fifty percent is 50 out of 100, or one half:

2. Percents Definition A percent means so many per hundred. Thirty percent is 30 out of 100. Fifty percent is 50 out of 100, or one half: 1. Math 210 Finite Mathematics Chapter 5.1 Percents Tax Savings Compound Interest Professor Richard Blecksmith Dept. of Mathematical Sciences Northern Illinois University Math 210 Website: http://math.niu.edu/courses/math210

More information

Understanding Investment and the Stock Market

Understanding Investment and the Stock Market Understanding Investment and the Stock Market By Karl Biedenweg, Ph.D COPYRIGHT 2003 Mark Twain Media, Inc. ISBN 978-1-58037-859-8 Printing No. 1572-EB Mark Twain Media, Inc., Publishers Distributed by

More information

An Asset Allocation Strategy is Key to Choosing the Right Investment Mix. GoalMaker Makes the Choice Easy.

An Asset Allocation Strategy is Key to Choosing the Right Investment Mix. GoalMaker Makes the Choice Easy. PRUDENTIAL RETIREMENT. INTELLIGENT SOLUTIONS, WORKING FOR YOU. An Asset Allocation Strategy is Key to Choosing the Right Investment Mix. GoalMaker Makes the Choice Easy. Fun Fact The origin of asset allocation

More information

WHY CHOOSE TIAA-CREF?

WHY CHOOSE TIAA-CREF? WHY CHOOSE TIAA-CREF? Investing to achieve your personal financial goals often presents substantial challenges. At TIAA-CREF, we have always believed that well-thought-out retirement planning can minimize

More information

Chapter 2 Time value of money

Chapter 2 Time value of money Chapter 2 Time value of money Interest: the cost of money Economic equivalence Interest formulas single cash flows Equal-payment series Dealing with gradient series Composite cash flows. Power-Ball Lottery

More information

Putting it All Together.

Putting it All Together. C A N A D A L I F E S Putting it All Together. O F V A R I A B L E P R O D U C T S ASSET MODEL ALLOCATION PORTFOLIOS For Registered Representative Use Only. Not For Public Distribution. Canada Life s Prestige

More information

Investing Practice Questions

Investing Practice Questions Investing Practice Questions 1) When interest is calculated only on the principal amount of the investment, it is known as: a) straight interest b) simple interest c) compound interest d) calculated interest

More information

NOTE ON CAPITAL BUDGETING

NOTE ON CAPITAL BUDGETING NOTE ON CAPITAL BUDGETING Capital budgeting is the process of determining which investments a firm should undertake. Examples of investments include buying a new piece of equipment, increasing advertising

More information

Invest in your future

Invest in your future Invest in your future Investing, and your Pensions NO BETTER TIME THAN THE PRESENT - Investing, and Your Pension The sooner you start investing, the better off you will be. Taking an early interest in

More information

Economics Unit 4 Exam Chapters 10-13

Economics Unit 4 Exam Chapters 10-13 Economics Unit 4 Exam Chapters 10-13 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Which of the following is an example of a barter system? a. Instead

More information

The Concept of Present Value

The Concept of Present Value The Concept of Present Value If you could have $100 today or $100 next week which would you choose? Of course you would choose the $100 today. Why? Hopefully you said because you could invest it and make

More information

MODULE 3 THE NEXT BIG THING

MODULE 3 THE NEXT BIG THING INVESTING: STOCKS, BONDS & MUTUAL FUNDS This lesson has students learning about stocks, bonds, and mutual funds. The concepts of risk and reward, and return on investment (ROI) are explored. The FIT Work

More information

How do you make your Money grow?

How do you make your Money grow? How do you make your Money grow? TOPIC Ways to Save and Invest Money SUBJECT AREA Math RELATED SUBJECT AREAS Economics LESSON OBJECTIVES Students will: Compare and contrast investment vehicles including

More information

u n i t f o u r Savings and Investments: Your Money at Work "It s possible to have your money work for you in two ways..."

u n i t f o u r Savings and Investments: Your Money at Work It s possible to have your money work for you in two ways... Unit Four Savings and Investments: Your Money at Work "It s possible to have your money work for you in two ways..." In Unit 2, we talked a lot about how you earn money working at a job. In this unit,

More information

1. (6) Which of the following is most likely to appreciate over time: a car, a computer, or a parcel of land? (parcel of land)

1. (6) Which of the following is most likely to appreciate over time: a car, a computer, or a parcel of land? (parcel of land) QUIZ BOWL #1 1. (6) Which of the following is most likely to appreciate over time: a car, a computer, or a parcel of land? (parcel of land) 2. (8) To lower your debt, it is usually best to start paying

More information

Dow Australia Superannuation Fund

Dow Australia Superannuation Fund Dow Australia Superannuation Fund Investment Guide ISSUED: 1 JULY 2016 The information in this document forms part of: the Product Disclosure Statement for Employee members (including Insurance Only members),

More information

LESSON 12 ALL SAVINGS CHOICES INVOLVE RISK: GRANDMA S GIFT

LESSON 12 ALL SAVINGS CHOICES INVOLVE RISK: GRANDMA S GIFT LESSON 12 ALL SAVINGS CHOICES INVOLVE RISK: GRANDMA S GIFT INTRODUCTION In this lesson, students learn that all savings choices involve risk. Students evaluate various alternatives for saving money. ECONOMICS

More information

RICH DAD, POOR DAD By Robert T. Kiyosaki

RICH DAD, POOR DAD By Robert T. Kiyosaki INTRODUCTION RICH DAD, POOR DAD By Robert T. Kiyosaki Today, the most dangerous advice you can give a child is Go to school, get good grades and look for a safe secure job. That is old advice, and it s

More information

Investment Policy Questionnaire

Investment Policy Questionnaire Investment Policy Questionnaire Name: Date: Ferguson Investment Services, PLLC Investment Policy Questionnaire Introduction: The information you provide on this questionnaire will remain confidential.

More information

Securian Financial Services MAPS. The Model Allocation Portfolio System. Matching your investments to your goals

Securian Financial Services MAPS. The Model Allocation Portfolio System. Matching your investments to your goals Securian Financial Services MAPS The Model Allocation Portfolio System Matching your investments to your goals Finding the right direction One of the greatest challenges you face as an investor is determining

More information

Principles for investing success

Principles for investing success Principles for investing success Vanguard s principles for investing success. How would you rate your driving? Above average Average Below average Focus on the things you can control. GOALS Create clear,

More information

Investing 101. Small Steps Can Make a Difference. Investing 101. Investing 101

Investing 101. Small Steps Can Make a Difference. Investing 101. Investing 101 Small Steps Can Make a Difference Today s Agenda Saving vs. Investing Investment Basics: Cash Bonds Stocks Mutual Funds Asset Allocation 2 Today s Agenda What would you like to get out of today s session?

More information

How Does Money Grow Over Time?

How Does Money Grow Over Time? How Does Money Grow Over Time? Suggested Grade & Mastery Level High School all levels Suggested Time 45-50 minutes Teacher Background Interest refers to the amount you earn on the money you put to work

More information

Chapter 1 The Financial Assessment

Chapter 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 information

Module 2 Glossary. The general rise of prices over time.

Module 2 Glossary. The general rise of prices over time. Module 2 Glossary Term Inflation Aggressive Investment Risk Definition The general rise of prices over time. High risk. Examples: Stocks, Futures Asset allocation Distribution of investment money. Younger

More information

Vanguard Financial Education Series investing. How to invest your retirement savings

Vanguard Financial Education Series investing. How to invest your retirement savings Vanguard Financial Education Series investing How to invest your retirement savings During your working life, you ve saved and invested for retirement. Now that you re finally reaching retirement, consider

More information

ANNUITIES VARIABLE. MetLife Retirement Perspectives. asset allocation questionnaire

ANNUITIES VARIABLE. MetLife Retirement Perspectives. asset allocation questionnaire LINE BAN ANNUITIES VARIABLE MetLife Retirement Perspectives asset allocation questionnaire Asset Allocation Questionnaire The following questions will enable you to determine your time horizon and risk

More information

Investor Questionnaire

Investor Questionnaire Investor Questionnaire Answer the questions on the following pages with one specific financial goal in mind, such as retirement. Don t use this questionnaire for goals that require you to spend all of

More information

Financial Wellness & Education. Understanding mutual funds

Financial 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 information

Module 2 Practice Exam and Glossary V14

Module 2 Practice Exam and Glossary V14 Module 2 Practice Exam and Glossary V14 Term Inflation Aggressive Investment Risk Definition The general rise of prices over time. High risk. Examples: Stocks, Futures Asset allocation Distribution of

More information

Instructions for the Calendar Fundraising Kit

Instructions for the Calendar Fundraising Kit Sports Information Media 343 Millburn Avenue Millburn, NJ 07041 Phone: (800) 733-0543 Fax: 973-564-5601 Instructions for the Fundraising Kit Congratulations! You have just purchased an instant source of

More information

Leads to Financial Prosperity

Leads to Financial Prosperity Leads to Financial Prosperity Educating yourself about money The material has covered many financial topics you will encounter throughout your life. This knowledge provides the skills necessary to map

More information

Financial Literacy Part Two

Financial Literacy Part Two Financial Literacy Part Two 1. Banks and Credit Unions Credit Unions Credit unions do not make a profit. They are owned and run by their members. The members have something in common: religious interest,

More information

Lesson 8 Save and Invest: The Rise and Fall of Risk and Return

Lesson 8 Save and Invest: The Rise and Fall of Risk and Return Lesson 8 Save and Invest: The Rise and Fall of Risk and Return Lesson Description This lesson begins with a brainstorming session in which students identify the risks involved in playing sports or driving

More information

Microsoft Excel 2010 Lesson 4: Functions

Microsoft Excel 2010 Lesson 4: Functions Microsoft Excel 2010 Lesson 4: Functions Open the file Example.xlsx if is not already open. Mathematical and Statistical Functions Mathematical functions, not surprisingly, do routine mathematical calculations.

More information

Why it Matters: Making Saving Decisions

Why it Matters: Making Saving Decisions Why it Matters: Making Saving Decisions Lesson Overview This lesson looks at saving why, how, and when. Students read about why to save, the factors influencing saving, the power of compounding, and the

More information

Investor Profile Questionnaire

Investor Profile Questionnaire Investor Profile Questionnaire Making the right investment choice about your universal life investment portfolio always starts with an understanding of your personal goals and objectives. Working with

More information

BUYER S GUIDE TO FIXED DEFERRED ANNUITIES. Prepared by the National Association of Insurance Commissioners

BUYER S GUIDE TO FIXED DEFERRED ANNUITIES. Prepared by the National Association of Insurance Commissioners BUYER S GUIDE TO FIXED DEFERRED ANNUITIES Prepared by the National Association of Insurance Commissioners OAR 836-051-0915 EXHIBIT 1 The National Association of Insurance Commissioners is an association

More information

BUSINESS FINANCE (FIN 312) Spring 2008

BUSINESS FINANCE (FIN 312) Spring 2008 BUSINESS FINANCE (FIN 312) Spring 2008 Assignment 1 Instructions: please read carefully You can either do the assignment by yourself or work in a group of no more than two. You should show your work how

More information

Methods for Investing in Mutual Funds

Methods for Investing in Mutual Funds Methods for Investing in Mutual Funds It's hard enough to decide whether or not to invest with an advisor and to commit to a mutual fund style or portfolio goal. In addition, you have to decide how much

More information

Investment Risk and Capacity for Loss Process

Investment Risk and Capacity for Loss Process Investment Risk and Capacity for Loss Process Understanding a client s risk profile and capacity for loss is a key part of our service and we need to ensure that any recommendation meets certain criteria

More information

Your Guide to Retirement Savings Plans

Your Guide to Retirement Savings Plans Your Guide to Retirement Savings Plans Contents PAGE 1: Statement of Investment Philosophy... 1 2: Investment Strategy Considerations... 2 a. When will the funds be needed?...... 2 b. The importance of

More information

Personal 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 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 information

Why Mutual Fund? AMFI IAP (Association of Mutual Funds India Investor Awareness Program)

Why Mutual Fund? AMFI IAP (Association of Mutual Funds India Investor Awareness Program) Why Mutual Fund? AMFI IAP (Association of Mutual Funds India Investor Awareness Program) 1 Your Investment Menu Card Instrument Tax Benefit Return Duration Employees Provident Fund (EPF) 8.50% Long Term

More information

Personal Financial Literacy Vocabulary

Personal 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 information

Define your goals. Understand your objectives.

Define your goals. Understand your objectives. Define your goals. Understand your objectives. As an investor, you are unique. Your financial goals, current financial situation, investment experience and attitude towards risk all help determine the

More information

Investment Basics 101

Investment Basics 101 Investment Basics 101 Presented by: Dan Bernardo, QPFC, AIF Investment Consultant Brogan O Connor Investment Consultant Securities offered through Sentinel Securities, Inc. 781-914-1400. Member FINRA &

More information

AMFI IAP (Association of Mutual Funds India Investor Awareness Program)

AMFI IAP (Association of Mutual Funds India Investor Awareness Program) Why Mutual Fund? AMFI IAP (Association of Mutual Funds India Investor Awareness Program) Your Investment Menu Card Instrument Tax Benefit Return Duration EPF 8.50% Long Term PPF 8% Long Term NSC 8% Long

More information

College student investment. ARC Workshop for BUS By Yun Xu

College student investment. ARC Workshop for BUS By Yun Xu College student investment ARC Workshop for BUS By Yun Xu Student investments How to invest your money during college? Getting ahead financially before even embarking into the real world of work, mortgages

More information

Investment Planning 101

Investment Planning 101 Investment Planning 101 Setting Your Goals How SMART Are Your Goals? Specific Measurable Attainable Relevant Timely Write down and prioritize your goals. An Emergency Fund Where you An emergency keep your

More information

Chapter 07 Interest Rates and Present Value

Chapter 07 Interest Rates and Present Value Chapter 07 Interest Rates and Present Value Multiple Choice Questions 1. The percentage of a balance that a borrower must pay a lender is called the a. Inflation rate b. Usury rate C. Interest rate d.

More information

ENGR 155 Engineering economics

ENGR 155 Engineering economics ENGR 155 Engineering economics Jan 17: Introduction Chapter 1: Engineering economics overview Fundamental principles of engineering economics Time value of money Simple & compound interest Engineering

More information

Materials Lesson Objectives

Materials Lesson Objectives 165 Materials 1. Play money ($2,000 per student) 2. Candy (Different types, 10 per student) 3. Savvy student reward, which is an item perceived by the students to be of greater value than all the candy

More information

One-Stop-Shopping Investment For Retirement Planning

One-Stop-Shopping Investment For Retirement Planning TARGET DATE RETIREMENT FUNDS One-Stop-Shopping Investment For Retirement Planning Investing for retirement can be challenging if you re not an expert. Here s a simple choice for your retirement investing...

More information

Standard 12: The student will explain and evaluate the financial impact and consequences of gambling.

Standard 12: The student will explain and evaluate the financial impact and consequences of gambling. STUDENT MODULE 12.1 GAMBLING PAGE 1 Standard 12: The student will explain and evaluate the financial impact and consequences of gambling. Risky Business Simone, Paula, and Randy meet in the library every

More information

2.4 Buy, Rent, or Lease?

2.4 Buy, Rent, or Lease? . Buy, Rent, or Lease? YOU WILL NEED calculator financial application spreadsheet software EXPLORE Explain why your answers to the questions below might differ. You need a new pencil. Would you rent or

More information

7 Myths about Roth Ira Conversions. p. 2. 10 Step Inflation Survival Guide... p. 4. Video: Gold s Rise May End Badly for Investors... p.

7 Myths about Roth Ira Conversions. p. 2. 10 Step Inflation Survival Guide... p. 4. Video: Gold s Rise May End Badly for Investors... p. Volume 1.5 November 2010 Content prepared by Ken Mark, Kansas City Kansas Community College 7 Myths about Roth Ira Conversions. p. 2 10 Step Inflation Survival Guide........ p. 4 Video: Gold s Rise May

More information

Learner Outcomes. Target Audience. Materials. Timing. Want more background and training tips? Invest Well Stocks and Bonds. Teens.

Learner Outcomes. Target Audience. Materials. Timing. Want more background and training tips? Invest Well Stocks and Bonds. Teens. Learner Outcomes Outcome #1: Participants will be able to identify what a stock is. Outcome #2: Participants will be able to describe what affects the value of a stock. Outcome #3: Participants will be

More information

STRENGTH THROUGH BALANCE Old Mutual Unit Trust

STRENGTH THROUGH BALANCE Old Mutual Unit Trust STRENGTH THROUGH BALANCE Old Mutual Unit Trust 2 OLD MUTUAL NAMIBIA UNIT TRUSTS Old Mutual Namibia Unit Trusts offer investors expertly managed Funds to suit a variety of investment and savings needs.

More information

Investments. Introduction. Learning Objectives

Investments. Introduction. Learning Objectives Investments Introduction Investments Learning Objectives Lesson 1 Investment Alternatives: Making it on the Street Wall Street! Compare and contrast investment alternatives, such as stocks, bonds, mutual

More information

Envision Full Sample Presentation with Scenarios & Survivor Needs

Envision Full Sample Presentation with Scenarios & Survivor Needs December 06, 2011 Envision Full Sample Presentation with Scenarios & Survivor Needs Prepared for: Jim and Susan Taylor Prepared by: Financial Advisor Wells Fargo Advisors 1 N. Jefferson Ave. St. Louis,

More information

Dividends. By Bruce McNutt. Dividends are simply the profit paid to the owner of a particular stock.

Dividends. By Bruce McNutt. Dividends are simply the profit paid to the owner of a particular stock. Dividends By Bruce McNutt This article covers only some of the aspects of dividends. The purpose of this article is to give you a better idea of what dividends are and how they work. This article should

More information

The Mathematics of Savings

The Mathematics of Savings Lesson 14 The Mathematics of Savings Mathematics Focus: Algebra I, Algebra II, and Precalculus Mathematics Prerequisites: Prior to using this lesson, students should be able to: Use simple and compound

More information

DISCLAIMER: Copyright: 2013

DISCLAIMER: Copyright: 2013 DISCLAIMER: This publication is intended for EDUCATIONAL purposes only. The information contained herein is subject to change with no notice, and while a great deal of care has been taken to provide accurate

More information

Financial Intermediation

Financial Intermediation Financial Intermediation The last time you bought an apple at the grocery store did wonder at all who grew the apple? Probably not. You deal with the grocery store, a fruit intermediary among other things,

More information

An Introduction to Investing

An Introduction to Investing An Introduction to Investing Fin 303 Fall 2015 James Dow Overview 1. Before You Invest 2. Some Basic Concepts 3. Asset Allocation 4. Investing Using Mutual Funds 5. Investing In Individual Securities 6.

More information

Mutual Fund Advisory Program

Mutual Fund Advisory Program Mutual Fund Advisory Program GIVING YOU ACCESS TO A WIDE RANGE OF PROFESSIONALLY MANAGED MUTUAL FUND PORTFOLIOS THE MUTUAL FUND ADVISORY PROGRAM OFFERS YOU: > Access to actively managed investment solutions

More information

PROBABILITY MODELS FOR ECONOMIC DECISIONS by Roger Myerson excerpts from Chapter 8: Risk Sharing and Finance

PROBABILITY MODELS FOR ECONOMIC DECISIONS by Roger Myerson excerpts from Chapter 8: Risk Sharing and Finance PROBABILITY MODELS FOR ECONOMIC DECISIONS by Roger Myerson excerpts from Chapter 8: Risk Sharing and Finance 8.1. Optimal risk sharing in a partnership of individuals with constant risk tolerance To introduce

More information

SAVING & INVESTING WORKSHEET

SAVING & INVESTING WORKSHEET SAVING & INVESTING WORKSHEET 1) Use the Rule of 72 to approximate the following: $1,000 initial investment, at a 6% average annual return. What is the value after 36 years? A. $4,000 B. $6,000 B. $13,000

More information

Index P. 2-5. Chapter 1 : Which fund(s) should I choose?

Index P. 2-5. Chapter 1 : Which fund(s) should I choose? The MPF System can help scheme members increase the value of the assets. Your MPF is part of your retirement savings, for which careful planning and proper management are necessary. When making MPF investment

More information

Your future starts today.

Your future starts today. Your future starts today. Life can be complicated. Saving for retirement doesn t have to be. Congratulations! You have the opportunity to participate in an employer-sponsored retirement program. Important

More information

Investments 101. Glossary of investment terms. Account balance. Asset allocation. Asset class. Asset mix. Beneficiary

Investments 101. Glossary of investment terms. Account balance. Asset allocation. Asset class. Asset mix. Beneficiary Investments 101 Glossary of investment terms As you navigate through your online Purolator site and your account at mysunlife.ca/purolator, refer to this one-stop guide for definitions of common financial

More information

How to choose investments for your retirement

How to choose investments for your retirement How to choose investments for your retirement You have a lot of investment options in your retirement plan. Find out how to choose among them with this brochure. To put your financial plan into action,

More information

UNDERSTANDING MUTUAL FUNDS. TC83038(0215)3 Cat No 64095(0215)

UNDERSTANDING 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 information

What do other high school students know about investing?

What do other high school students know about investing? Investment Options What do other high school students know about investing? We asked high school students to describe the weirdest get rich quick scheme they ve ever heard of. Someone told me that I could

More information

How to Prepare a Cash Flow Forecast

How to Prepare a Cash Flow Forecast The Orangeville & Area Small Business Enterprise Centre (SBEC) 87 Broadway, Orangeville ON L9W 1K1 519-941-0440 Ext. 2286 or 2291 sbec@orangeville.ca www.orangevillebusiness.ca Supported by its Partners:

More information