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Movie 3
Movie 3
Movie 3
Movie 3
Movie 3
Movie 3
Movie 3
Movie 3
Movie 3
Movie 3
Movie 3
Movie 3
Movie 3
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Movie 3

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Published in: Economy & Finance, Business
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  • In this presentation, we will talk about how time value of money is such an important concept when you think about saving for the future, whether it is 1 year or 30 years down the road.
  • This chart shows how any one investment vehicle (bonds in this case) can fluctuate greatly over time, which shows that the more diversification your portfolio consists of, the better off you will be in the long run.This graph clearly shows that any one investment vehicle, such as bonds, can fluctuate over the years, which is diversification is so critical in a financial portfolio to help lower risk.
  • Transcript

    • 1. Key Concepts of Saving and Investing
      How to Save for Your Future
    • 2. Key Concepts of Saving & Investing
      Key #1: Pay yourself first
      Key #2: Set goals that will inspire success
      Key #3: Don’t take unnecessary risks
      Key #4: Put time to work for you
      Key #5: Diversify…Diversify…Diversify
    • 3. Key Concepts of Saving & Investing
      Key #1: Pay yourself firstMake investing a habit.
      $5,000
      $5,000
      $5,000
      Initial balance
      Interest per year
      2.16%
      8%
      10%
      Deposit per month
      $0
      $380
      $279
      Number of years
      20
      20
      20
      Future Value
      $7,699
      $250,000
      $250,000
    • 4. Key Concepts of Saving & Investing
      Key #2: Set goals that will inspire success
    • 5. Setting SMART Financial Goals
      Specific
      Time Limit
      Relevant
      Measurable
      Attainable
      Short-Term Goals = Within one year
      Medium-Term Goals = Within next 2-5 years
      Long-Term Goals = More than 5 years from now
    • 6. Key Concepts of Saving & Investing
      Saving and investing choices for different types of goals:
      Short-term goals
      Certificates of Deposit
      Money Market Funds
      Medium-term goals
      Longer-term Certificates of Deposit
      Targeted Bonds
      • Long-term goals
      • 7. Equity Mutual Funds
      • 8. Corporate Stocks
      • 9. Long-term corporate/government bonds
      • 10. IRAs, 401(k)s, Keogh, 403(b)s
    • Key Concepts of Saving & Investing
      Key #3: Don’t take unnecessary risks
      Risk – the chance you take that all or part of the money put into an investment can be lost
    • 11. Key Concepts of Saving & Investing
      How much risk is right?
      • The bigger the risk is, the bigger the potential payoff
      BUT
      • The bigger the potential payoff, the bigger the risk
    • Key Concepts of Saving & Investing
      Key #4: Put time to work for you
      Compound interest – the interest earned on principal plus previously accrued interest
      Time Value of Money – consumers generally prefer a dollar today more than a dollar in the future. If we have to wait, they have to pay us.
      RULE OF 72:
      72 = Number of years for money
      Interest Rate to double in value
      Example: 72/6 = 12 years
    • 12. Long-Run Cumulative Wealth
      Diversification Is Key
    • 13. Key Concepts of Saving & Investing
      Key #5: Diversify…Diversify…Diversify
      “Never put all your eggs in one basket…”
    • 14. No one knows the future: Diversify
    • 15. Safeguard Your Savings
      This presentation is made possible by:
      Missouri Secretary of StateRobin Carnahan
      www.investorprotection.org

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