Investments (PLVS)

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Investments (PLVS)

  1. 1. INVESTMENTS Strategies, Retirement, Stock Market…
  2. 2. <ul><li>Investing—putting money to work so that it makes even more money over time. </li></ul>INVESTMENT
  3. 3. INVESTMENT CHARACTERISTICS <ul><li>Return—income an investment produces </li></ul><ul><li>Liquidity—the ease with which assets can be converted to cash </li></ul><ul><li>Volatility—the degree to which an investment’s return or value may change </li></ul><ul><li>Risk—possibility of variation in the return on investment </li></ul>
  4. 4. PRINCIPLES OF INVESTING <ul><li>Identify Objectives—purpose/goals </li></ul><ul><li>Focus on Strategy </li></ul><ul><li>*income </li></ul><ul><li>*growth </li></ul><ul><li>*tax reduction </li></ul><ul><li>Diversify Investments </li></ul>
  5. 5. LEARNING ABOUT INVESTING <ul><li>Reliable media sources </li></ul><ul><li>Courses in financial planning </li></ul><ul><li>Investment clubs </li></ul><ul><li>Professional advisors </li></ul>
  6. 6. RETIREMENT PLANNING <ul><li>Social Security </li></ul><ul><li>Pension Plans </li></ul><ul><ul><ul><li>Defined-benefit plan </li></ul></ul></ul><ul><ul><ul><li>Defined-contribution plan </li></ul></ul></ul><ul><li>401K </li></ul><ul><li>Others </li></ul>
  7. 7. PERSONAL INVESTMENTS <ul><li>Individual Retirement Accounts </li></ul><ul><ul><ul><li>Traditional IRA </li></ul></ul></ul><ul><ul><ul><li>Roth IRA </li></ul></ul></ul><ul><li>Keogh Plans </li></ul>
  8. 8. TAKING CHARGE <ul><li>Start Early </li></ul><ul><li>Review Your Plan Regularly </li></ul>
  9. 9. STOCK MARKET <ul><li>Stock—ownership interest in corporation </li></ul><ul><li>Shares—individual units of ownership </li></ul><ul><li>Shareholders—part-owners of the corporation </li></ul>
  10. 10. STOCK TRADING <ul><li>Stock Market—auction of sorts </li></ul><ul><li>Stock Exchange—trading floor </li></ul><ul><ul><ul><li>NYSE-New York Stock Exchange </li></ul></ul></ul><ul><ul><ul><li>AMEX-American Stock Exchange </li></ul></ul></ul><ul><li>Nasdaq—global electronic network </li></ul><ul><li>SEC—Securities and Exchange Commission </li></ul>
  11. 11. RETURNS ON STOCKS <ul><li>Dividend—a payment to shareholders that represents a portion of the company’s net profits </li></ul><ul><li>Capital gains and losses—buy low, sell high=capital gain or buy high, sell low=capital loss </li></ul>
  12. 12. OTHER WAYS TO BUY STOCK <ul><li>401(K)—defined contribution plan employee contributes on a pre-tax basis which might be invested in stock </li></ul><ul><li>ESOP—Employee Stock Ownership Plan </li></ul><ul><li>Mutual Funds—a group of investments held in common by many individual investors </li></ul>
  13. 13. RISK OF OWNING STOCK <ul><li>The Company’s Health </li></ul><ul><li>Industry Trends </li></ul><ul><li>Economic Factors </li></ul><ul><li>National and World Events </li></ul>

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