This document provides information on various investment options for growing wealth, including savings accounts, CDs, metals, bonds, real estate, and stocks. It summarizes the risk and potential return for each option. Savings accounts and CDs carry low risk but also low potential returns of around 1-2%. Gold/silver and bonds have moderate to varying levels of risk depending on the type of bond, but higher potential returns. Real estate investments like home ownership have low risk if held long-term, while rentals have varying risk levels. Stocks generally have higher risk but higher average historic returns of 7.3% as well. General tips for stock investing include maintaining a long-term perspective and diversifying investments.

1. Growing Your Wealth

2. Savings Accounts/Money Market Accounts
Risk
• Low
• Insured by the government up
to $250,000 per person, per
account
• Banks loan this money out to
consumers and make interest
off of it
Return
• Low- about 1 % now
-

3. CD’s- Certificates of Deposit
Risk
• Low
• Depositing money to the bank
for a set time period
• Insured up to $250,000 by FDIC
Return
• 1 Year- 1.35%
• 2 Year- 1.50%
• 5 Year- 2.25%
• Rates change with interest
rates

4. Gold/Silver Metals
Risk
• Moderate
• Can buy coins, bars or stocks
• Can have high opportunity cost
versus inflation- it pays
nothings to hold
• Hedge against inflation and
high risk times
Return

5. Bonds (Loan Money to the government or companies)
Risk
• Varies (must look at the bond rating)
• Ratings go from AAA, AA, A, BBB, BB
etc. all the way to C)- higher the
rating the less risk and lower return.
• Bond values can fluctuate through
supply and demand and interest
rates
• You can always wait to the end of
the mature date on treasury bonds
and get the interest promised.
Return
• Corporate Bonds
• Treasuries
• Municipal

6. Real Estate- Residential
Risk
• Flipping/Rentals:
• Risk Varies/Many Variables-
interest rates, overall market
conditions, cash flow,
building/real estate skills
• Personal Home Ownership:
• Low if living for the long term
and you keep debt/income ratio
low
Return
• Since 1975- 4.8% for home
ownership
• Since 1952- 6.9% for rentals

7. Basics of the Stock
Market
https://www.youtube.com/watch?v=ejjNMnIo3Fg

8. Stock Market
Risk
• The market that buys and sells
stocks (ownership in
companies)
• Varies- depends on your risk
tolerance and approach
• Also depends on when you buy
and when you sell
Return
• Historic return on stocks is
7.3%

9. General Tips on Stock Investing
1. Sell the Losers, Let the Winners Ride
2. Adopt a Long-Term Perspective
3. Buy Low- sell High
4. Understand your risk tolerance and emotions
5. Diversify
6. Buy only what you understand
7. Past Trends often continue
8. Avoid unethical businesses
9. Buy value, quality
10. Keep cash on hand
11. Trust low cost index funds