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Foundations of Investing
edwardjones.com Member SIPC
1MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
1WHERE
AM I TODAY?
2WHERE
WOULD I LIKE TO BE?
3CANI GET
THERE?
4HOW DO
I GET THERE?
5HOW CAN I STAY ON TRACK?
MY FINANCIAL
NEEDS
®
2MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
“Why” Leads to “How”
Develop a Strategy
Invest for the Long Term Focus on What You Can Control
DiversifyStick with Quality
3MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
Develop a StrategyRule 1
4MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
Stick with QualityRule 2
GOLDSI
LVE
R FADS TECHINTERNET
OILDIGITAL
REAL ESTATE
5MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
DiversifyRule 3
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VARIETY
DIVERSIFY
Bonds7MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
Why Bull & Bear?8MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
$20
COMPANY SHARES
$30
CAPITAL APPRECIATION
$10BOUGHT SHARE OF STOCK FOR
$20
SOLD SHARE OF STOCK FOR
$30
Stocks9MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
Stocks Not Paying Dividends Stocks Paying Dividends
9.0%
2.6%
Stick with Quality
Source: Ned Davis Research, 1/31/1972 – 8/31/19. Uses indicated annual dividends on a rolling 12-month basis. Past performance may not be an indication of future results. The S&P 500 is an unmanaged index and is not meant to depict an actual investment. Does not include transaction costs or taxes. Dividends can be increased, decreased, or eliminated at any point without notice. Further distribution prohibited without prior permission. Copyright © 2019 Ned Davis Research, Inc. All rights reserved.
Dividends Are ImportantAverage Annual Return
10MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
Quality Makes a Difference
Source: Ned Davis Research, 1/31/1972 – 8/31/2019. Uses indicated annual dividends on a rolling 12-month basis. Past performance may not be an indication of future results. The S&P 500 is an unmanaged index and is not available for direct investment. Does not include transac-tion costs or taxes. Dividends can be increased, decreased, or eliminated at any point without notice. Further distribution prohibited without prior permission. Copyright © 2019 Ned Davis Research, Inc. All rights reserved.
22.0% 21.1%
-20.2%
-33.8%
Bull Markets Bear Markets
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
-20%
-25%
-30%
-35%
n Dividend-paying stocksn Non-dividend-paying stocks
Average Annual Return
11MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
INVESTORS
INVESTORSINVESTORS
INVESTORS
GROWTH INCOME GROWTH & INCOME
Packaged Investment Products12MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
Diversification
Multiple Companies
Professional Management
Benefits of Mutual Funds13MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
STOCKS DIVIDENDS=CAPITAL GAINSDISTRIBUTION$ $
SHARE PRICE OFMUTUAL FUNDS
BONDS INTEREST= %
Mutual Funds Earnings14MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
Invest for the Long TermRule 4
15MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
$26
$24
$22
$20
$18
$16
$14
$12
$10
$8
$6
$4
$2
$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Dollar Cost Averaging – $417/Month
Shar
e P
rice
Total Purchased: 300 Shares
Average Price: $17/share21
2628
3532
2628
2119
24
1921
Number of Shares Purchased
$26
$24
$22
$20
$18
$16
$14
$12
$10
$8
$6
$4
$2
$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Lump Sum – $5,000
Shar
e P
rice
Total Purchased: 250 Shares
Average Price: $20/share
Source: Edward Jones. These charts are for illustrative purposes only and are not intended to represent the performance of any security. These illustrations do not include commissions or fees. Past performance does not guarantee future results. Stock prices can also go down, which could result in a loss of principal invested.
Systematically Investing vs. Lump-sum Investment
Systematic Investing16MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
Focus on What You Can ControlRule 5
PlanBudgetReview
17
You can’t
control:Stock
market
Tax laws
Every investment
has some risk
You can control:Saving and spending habits
Having an emergency fund
Your level of debt
MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED. 18
Summary
Develop a Strategy
Stick with Quality
Diversify
Invest for the Long Term
Focus on What You Can Control
Rule 1
2
3
4
5
19MKD-4521E-A-SL EXP 31 OCT 2021 © 2019 EDWARD D. JONES & CO, L.P. ALL RIGHTS RESERVED.
&AnswersQuestions
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