SAVINGS & INVESTMENT PORTFOLIO

STOCKS

• Description-A piece of paper virtual that says you own part of a the corporation
• How investment- talking to the owner and negotiating a price
• Interest rate- 6.8%
• High risk factor
• Return potential is high
• Must talk to owner of stock and negotiate a price
• Invested $1,000
• I choose this one because you never know how far a really great stock can go

SAVINGS ACCOUNT

• Description- low return investment available for bank.
• Invested- $40,000
• Interest rate- 1%
• Low risk because you're just letting your money sit in an account
• Low return potential
• You go to a bank to open a savings account
• I choose this tool because it's the least risky

MONEY MARKET ACCOUNT

• Description- a deposit that interest rate changes over time
• Average interest rate- 2%
• Low risk
• Low return potential
• Account is offered by a bank
• Invest $30,000

BONDS

• Description- lending investment at a rate for particular period
• Investment $10,000
• Low-Moderate return potentially
• Low risk
• A bond is offered by the government
• I choose this type of investment because it isn't risky
• Average interest rate- .10%

CERTIFICATE OF DEPOSITS

• Description- a lending investment which you lend money to the bank
• Investment- $19,000
• Average return potential
• Low risk
• I choose this one because the bank will have to pay me back and I can add interest
• Interest rate .5%

FINAL SLIDE

• People should change their investment plan throughout their life cycle because you start to become more aware of what you're getting yourself in pot and can manage different investment plans
• Diversification is important because it helps make overall investments safer