Product And Investment Training


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Product And Investment Training

  1. 1. Making money sensetips and ideas to help your family prosper<br />Product and Investment Training<br />1<br />
  2. 2. Stock Basics <br />Represent units of ownership or shares in a company.<br />Traded in the US on various exchanges like the NYSE, the AMEX, the OTC and the NASDAQ. International stocks are traded in foreign exchanges like the FTSE and the Shanghai.<br />Stock prices go up and down on a daily basis, but compared to other types of investments, stocks have produced among the highest long-term returns over the past several decades.<br />2<br />
  3. 3. How To Read A Stock<br />3<br /><ul><li>Columns 1 & 2: 52 Week high and low - These are the highest and the lowest prices at which a stock has traded over the previous 52 weeks (one year). Typically does not include the previous day’s trading.
  4. 4. Column 3: Company name & type of stock – Lists the names of the company. If there are no special symbols or letters following the name, it is a common stock. Different symbols imply different classes or shares. For example, “pf” means the shares are preferred stock.
  5. 5. Column 4: Ticker symbol – This is the unique alphabetic name which identifies the stock.
  6. 6. Column 5: Dividend Per Share – This indicates the annual dividend payment per share . If this space is blank, the company does not currently pay out dividends.
  7. 7. Column 6: Dividend Yield - The percentage return on the dividend. Calculated as annual dividends per share divided by price per share.</li></li></ul><li>How To Read A Stock Cont…<br />4<br /><ul><li>Column 7: Price/Earning Ratio – This is calculated by dividing the current stock price by the earning per share from the last four quarters.
  8. 8. Column 8: Trading Volume – This figure shows the total number of shares traded for the day, listed in hundreds. To get the actual number traded, add “00” to the end of the number listed.
  9. 9. Column 9 & 10: Day high and low – This indicates the price range at which the stock has traded at throughout the day. In other words, these are the maximum and the minimum prices that people have paid for the stock.
  10. 10. Column 11: Close – The close is the last trading price recorded when the market closed on the day. If the closing price is up or down more than 5% than the previous day’s close, the entire listing for that stock is bold-faced. You are not guaranteed to get this price if you buy the stock the next day because that price is constantly changing.
  11. 11. Column 12: Net Change – This is the dollar value change in the stock price from the previous day’s closing price. When you hear about a stock being “up for the day”, it means the net change was positive.</li></li></ul><li>Bond Basics <br />5<br />IOU’s issued by corporations or governments in exchange for a loan of money to them.<br />The corporation or government entity promises to pay interest on that loan, usually every six months. They promise to repay the principal amount of the bond itself on a specific maturity date (up to 30 years in the future).<br />Bonds are traded on exchanges or in markets here and abroad.<br />Bond offer a stable investment alternative when stocks are volatile.<br />Taxable bonds (corporate & government) vs. tax-free bonds (municipal) <br />
  12. 12. Mutual Funds<br />A mutual fund provides a way for people with common financial goals to pool resources together.<br />The money that is brought in is invested by a professional financial manager(s) in a number of different securities.<br />Typically invest in securities such as stocks, bonds and other specialized types of investments.<br />Potentially, investors can reap rewards from pooling their assets in mutual funds vs. buying individual securities.<br />6<br />
  13. 13. Annuity <br />A contract between you and an insurance company, under which the insurer agrees to make periodic payments to you.<br />Fixed annuities offer guaranteed tax deferred rates that rival the rates of CD’s.<br />Variable annuities offer a variety of mutual fund choices that invest in stocks, bonds, money markets instruments or some combination of the three.<br />Annuities may be funded with a single investment or a series of systematic payments.<br />Annuity returns are tax deferred until withdrawn. <br />7<br />
  14. 14. Common Investment Vehicles<br />8<br />
  15. 15. 401K vs. 403B<br />9<br />
  16. 16. 401K vs. 403B<br />10<br />
  17. 17. Traditional IRA vs. Roth IRA<br />11<br />
  18. 18. Traditional IRA vs. Roth IRA<br />12<br />
  19. 19. Pension Plans <br />13<br />A type of retirement plan, usually tax exempt, where an employer makes contributions toward a pool of funds set aside for an employee&apos;s future benefit. <br />The pool of funds is then invested on the employee&apos;s behalf, allowing the employee to receive benefits upon retirement. <br />There are two main types of pension plans: <br />Defined-benefit plan: the employer guarantees that the employee will receive a definite amount of benefit upon retirement, regardless of the performance of the underlying investment pool.<br />Defined-contribution plan: the employer makes predefined contributions for the employee, but the final amount of benefit received by the employee depends on the investment&apos;s performance. <br />Source:<br />
  20. 20. 5 Step Financial Planning Process<br />Financial Planning Process <br />14<br />Source:<br />
  21. 21. 10 Steps to Good Financial Housekeeping <br />15<br />Update your will<br />Evaluate current debt<br />Insurance<br />Budget or track monthly expenses<br />Pay yourself first<br />Prioritize your financial goals<br />Build professional relationships<br />Proper asset allocation<br />Protect important documents<br />Investment diversification <br />
  22. 22. For more information:<br />920.882.4800<br /><br />For more great financial tips and news follow us on Twitter and facebook!<br /><br /><br />16<br />Sources: American Funds, LPL Financial, CU Employee Solutions,,,, <br />