This document provides an overview of a beginner's guide to wealth building workshop. It discusses starting a personal investment plan and contributing to defined contribution plans like 401(k)s to save for retirement. It emphasizes the importance of tax shelters and gauging your investment attitude. Sample budgets are provided to help with financial planning. The workshop also discusses creating a balance sheet to track assets and liabilities, and starting the savings habit by paying yourself first. Later sections cover various investment vehicles like stocks, bonds, mutual funds and their associated markets and indexes to consider for building an investment portfolio.

1. A Beginners Guide to Wealth Building
Workshop
Robert L. Woods, B.A., M.B.A.
Author, Speaker, Investment Consultant

2. Part I. The Hard Part – Getting Started

3. 3
Investing Today For A Secure Tomorrow
Starting a Personal Investment Plan is an
empowering step.
•The Internal Revenue Service (IRS) has a great
savings program that allows you to :
• Reduce taxable income (a Tax Shelter).
• Saving money
•Contribute to a Defined Contribution Plan (DC Plan)
with pre-tax dollars.
•Use a DC Plan to save money.
• 25% (1 in 4) have no savings.
• 40% of working families are not saving for retirement.

4. Importance of Tax Shelters
2016 Taxable Income Brackets and Rates (Estimate)
Rate Single Filers Married Joint Filers Head of Household Filers
10% $0 to $9,275 $0 to $18,550 $0 to $13,250
15% $9,275 to $37,650 $18,550 to $75,300 $13,250 to $50,400
25% $37,650 to $91,150 $75,300 to $151,900 $50,400 to $130,150
28% $91,150 to $190,150 $151,900 to $231,450 $130,150 to $210,800
33% $190,150 to $413,350 $231,450 to $413,350 $210,800 to $413,350
35% $413,350 to $415,050 $413,350 to $466,950 $413,350 to $441,000
39.6% $415,050+ $466,950+ $441,000+
Source: http://taxfoundation.org/article/2016-tax-brackets

5. Gauging Your Investment Attitude
What kind of investor are you?
Strongly
Agree Agree Disagree
1. I am confident in making my own investments decisions. 5 3 1
2. I favor the stock market (equities) over other investment options. 5 3 1
3. I am comfortable with the ups and downs in the market because 5 3 1
of my long-term investment horizon.
4. I am willing to take short term losses for the prospect of higher 5 3 1
gains over time.
5. When I consider investment options, I look at performance over 5 3 1
the last several years.
6. I prefer to limit my exposure to bonds because I am concerned 5 3 1
they could lower my overall investment returns.
7. I feel comfortable including international investments in my portfolio. 5 3 1
8. I think investing in emerging markets will diversify my portfolio 5 3 1
and increase my return potential.
9. I think I should adjust my portfolio annually, even if it means selling 5 3 1
some of my best performing assets.
10. I believe that investing at regular intervals, even in down markets, leads 5 3 1
to higher overall portfolio performance.
Total

6. Planning For The Rest Of Your Life
Get Out Your Crystal Ball?
 Will I be able to retire?
 Some people wait to retire only to find out they are
not ready or can’t.
 What will my retirement be like?
 How will you live?
 What quality of life do you want or expect?
 How much will I need?
 Aha, the magic question.
 When will I have the time to think about all of this?
 Consider a Personal Retirement Retreat.

7. Getting Started
The Spending Personality Assessment (SPA)
 Prepare a projected budget
 Collect every bill and every receipt for 45 days.
 Take an afternoon out and create an actual budget.
 Revise budget based on expenses.
 Buy the things you need.
 Budget and Save for the things you want.

8. Sample Budget
MONTH: EXPENSES INCOME
MONTHLY INCOME
PAY CHECK -$
OTHER INCOME -$
-$
-$
-$
-$
TOTAL CASH INCOME -$
MONTHLY EXPENSES
HOUSE/RENT -$
FOOD -$
CLOTHS -$
SHOES -$
CELL PHONE -$
COMPUTER/INTERNET -$
CABLE/ SAT TV -$
RECREATION -$
MEDICAL/DENTAL -$
CAR/INSURANCE -$
PERSONAL ITEMS -$
TOTAL EXPENSES -$
NET CASH FLOW/OUTFLOW -$

9. MONTH: EXPENSES INCOME
MONTHLY INCOME
PAY CHECK 3,000.00$
OTHER INCOME -$
-$
-$
-$
-$
TOTAL CASH INCOME 3,000.00$
MONTHLY EXPENSES
HOUSE/RENT 1,000.00$
FOOD 300.00$
CLOTHS 75.00$
SHOES 75.00$
CELL PHONE 80.00$
COMPUTER/INTERNET 59.00$
CABLE/ SAT TV 90.00$
RECREATION 350.00$
MEDICAL/DENTAL 80.00$
CAR/INSURANCE 200.00$
PERSONAL ITEMS -$
TOTAL EXPENSES 2,309.00$
NET CASH FLOW/OUTFLOW 691.00$
Sample Budget

10.  The Balance Sheet is an up-to-date listing of your:
 Assets (what you own) and your
 Liabilities (what you owe).
 A Simple Addition/Subtraction Process:
+Assets (what you own)
-Liabilities (what you owe)
= Net Worth
 Over the years, your Net Worth will grow as you
become more successful in managing your money
and investments, while paying off your debts.
The Balance Sheet

11. A Balance Sheet
Assets Liabilities
Cash and Cash Equivalents Credit Card Balances -$
Checking Accounts -$ Personal Loans -$
Savings Accounts -$ Student Loans -$
Money Market Accounts -$ Automobiles -$
Certificates of Deposits (CD's) -$ 401(k) Loans -$
Investments -$ Investment Loans -$
Stocks -$ Residential Mortgage Loans -$
Bonds -$ Home Equity Lines of Credit -$
Mutual Funds -$ Alimony -$
Real Estate -$ Child Support -$
Defined Contribution Plan Investments -$ Life Insurance Policy Loans -$
Other Investments (Trusts & Etc) -$ Projected Taxable Income -$
Total -$ Other Liabilities -$
Personal Assets -$ Total Liabilities -$
Primary Residence -$
Automobiles -$
Home Furnishings -$
Furs and Jewelry -$
Other Valued Assets -$
Total Assets -$

12. 12
Start The Savings Habit
• Start The Savings Habit
• DC Plans, you are in as a long term investor (20-
30 years).
• 401(k)…403(b)…457, Thrift Savings Plan (TSP)
are Employer Based Defined Contribution Plans
named after the IRS Code that regulates them.
• myRA is a new U.S. Department of the Treasury
sponsored, ROTH IRA type program for investors
who do not qualify for the standard DC Plans.

13. 13
Start The Savings Habit
• Rule of Thumb: Pay yourself first & live off what’ s
left of your take home pay.
• If you are saving less than 10% do a SPA to find
ways to save more. If you are saving 10% save more!
• Save and invest pretax dollars.
Saving Goal $312 Each Month
Salary $3,120
Tax Bracket 25%
Saving After Taxation
Pre tax 25% Adjusted Take
Saving Tax Income After Tax Home
$3,120 $0 $780 $3,120 $312 $2,028
Pre-Taxation Saving
$3,120 $312 $702 $2,808 $0 $2,808
$3,120 $412 $677 $2,708 $0 $2,708

14. 14
What Percent Of My Income Should I Save?
Contribution/Mo. Future Value Future Value @8%
Present Value 360 mos./30 yrs. 324 mos./27 yrs. Difference of 3 Years
$100.00 $149,035.00 $ 114,138.00 $34,897.00
$125.00 $186,294.00 $ 142,673.00 $43,621.00
$150.00 $223,553.00 $ 171,207.00 $52,346.00
$200.00 $298,071.00 $ 228,276.00 $69,795.00
$250.00 $372,589.00 $ 285,345.00 $87,244.00
$300.00 $447,108.00 $ 342,414.00 $104,694.00
324 mos/27 yrs
360 mos/30 yrs
$-
$500,000.00
5 yrs
10 yrs
15 yrs
20 yrs
25 yrs
30 yrs

15. Part II
Investment Vehicles That Drive Your
Investment Portfolio

16. Investment Vehicles That Drive Your
Investment Portfolio
The Stock (Equities) Market
Global Stock Market Cap.: $54 Trillion
U.S. Stock Market Cap.: $21 Trillion
$70.00
$20.00
2013 Value of $1.00
invested in 1926
$3,992.00
T-Bills Bonds Stocks

17. The Stock (Equities) Market
 What is a Stock? A stock is a security that gives you:
 Types of Stocks
 Growth
 Value
 Core
 Emerging Market
 Developing Markets
 Alternative Investments: Real Estate, Derivative
Securities

18. The Stock (Equities) Market
 Types of Stocks (Terminology)
 Market Capitalization: The market value of a
corporation. Computed by multiplying the # of
Shares outstanding by the current share price.
 Large Capitalization Stocks (Large Cap Stocks)
 Mid Capitalization Stocks (Mid Cap Stocks)
 Small Capitalization Stocks (Small Cap Stocks)

19. The Stock (Equities) Market
 Management Styles
 Active Management
 Passive Management
 Types of Equity (Stock) Management Styles
 Growth Managers
 Value Managers

20.  Top Down Sector Rotator Managers
 Bottom Up Sector Rotator Managers
 Quantitative Managers
 Technical Managers
Types of Equity (stock) Management Styles

21. 21
Equities Exchange Markets/Indexes
• The Dow Jones Industrial Average (the DJIA
or the DOW).
• Standard & Poor’s 500 (S&P 500)
• NASDAQ (National Association of Securities
Dealers Automated Quotation).

22. 22
Other Exchange Markets/Indexes
• The Wilshire 5,000 total market index
contains more than 6,500 stocks and is the
largest index in the U.S.
• The Russell 2,000 index measures the
performance of small caps that often get left
out of the other big indexes.
• Index Funds have lower expense ratios than
other mutual funds and allows investors to
get that markets’ return.
• There are literally thousands of other indexes,
tracking various regions and industries.

23. Investment Vehicles That Drive Your
Investment Portfolio
The Bond (Fixed Income) Market
Global Bond Market: $93 Trillion
U.S. Stock Market Cap.: $37 Trillion
$70.00
$20.00
2013 Value of $1.00
invested in 1926
$3,992.00
T-Bills Bonds Stocks

24. 24
Fixed Income (Bonds)
• What is a Bond? A Bond is a fixed income security
because it has:
• A fixed interest rate
• A fixed payment period
• A fixed period of time to maturity
• Bonds are:
• Debt instruments (basically a loan to a company).
• Bonds have fixed cash flows.
• Bonds Diversify your portfolio.
• Bonds are issued by governments and corporations.
• Bonds are purchased:
• At Par = 100%
• At a Discount – (less than 100%) = 98%
• At a Premium – (more than 100%) = 102%

25. 25
Fixed Income (Bonds)
• Types of Bonds
• Government Bonds
• Zero-Coupon Bonds
• Corporate Bonds
• Asset and Mortgage Back Securities (MBS)
• Municipal Bonds.
• High Yield Bonds (also known as Junk Bonds).
• High risk/high reward instruments used by private equity
firms.

26. 26
Bond Rating
Moody's
S&P/
Fitch
Investment
Grade
Investment
Grade
Aaa AAA Investment Highest Quality
Aa AA Investment High Quality
A A Investment Strong
Baa BBB Investment Medium Grade
Ba, B BB, B Junk Speculative
Caa/Ca/C CCC/CC/C Junk Highly Speculative
C D Junk In Default

27. 27
Fixed Income (Bonds)
• Now you know the basics of bonds. Not too complicated, is it? Here is
a recap of what we discussed:
• Bonds are just like IOUs.
• Stocks are equity; bonds are debt.
• The key reason to purchase bonds is to diversify your portfolio.
• The issuers of bonds are governments and corporations.
• A bond is characterized by its face value, coupon rate, maturity and
issuer.
• Yield is the rate of return you get on a bond.
• Bond Funds are actively traded and may act like stocks

28. Investment Vehicles That Drive Your
Investment Portfolio
The Mutual Fund Market
Over 7, 900 Funds
$15.8 Trillion
$70.00
$20.00
2013 Value of $1.00
invested in 1926 $3,992.00
T-Bills Bonds Stocks

29. 29
Mutual Funds (MF)
 A MF is like an Index Fund where individual
companies are pooled into one security.
• Advantages of a MF are:
• Offers Asset Allocation
• Diversification
• Managed by Investment professionals
• Research capabilities
• Mutual Funds invest in:
• Stocks
• Bonds
• Derivative Securities
• Money Market Securities

30. 30
Types of Mutual Funds
• Aggressive Growth
• Asset Allocation
• Balanced Funds
• Exchange Trade Funds (ETF’s).
• Fixed Income Funds
• Income or Growth and Income
• Index Funds
• International, Global, Emerging and Developing markets
• Large, Medium and Small Capitalization Funds
• Life Cycle/Target Date Funds
• Private Equity
• Real Estate Investment Trusts (REIT’s).
• Tax Exempt
• Total return
• U.S. Government Securities (Notes and Bonds).

31. 31

32. Next Seminar
Part III - Investment Tips From the Pros