personal management charting your course through time & money
Post on 20-Dec-2015
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Personal ManagementCharting Your Course Through Time & Money
Requirement 4 – Saving & Investing► Saving your money
• Goal:• Set it aside for future use• Protect it (very low risk)• Assure it is always available
► Investing your money• Goal:
• Obtain a Return on Investment (ROI)• Balance Risk vs. Reward• Balance Accessibility vs. Future Need
Types of Investments► Stock
• You become a part owner of a company► Bond
• You lend money to a company or government► Certificate of Deposit
• You lend money to a bank► Real Estate
• You own a piece of land and/or a building► Commodities
• You own tradable items such as: Gold, silver, wheat, pork bellies, oil, etc.
► Mutual Funds• You own a share in a collection of individual investments
(stocks or bonds) from many companies
Risk vs. Return► Risk – the chance you will loose money or
not get any of your money back► Return – the amount of money you earn as
the result of an investment► Examples: (put them in order of risk, then return)
• US Savings Bonds Series EE• Stock in the Latest High-Tech Startup• A High Quality Corporate Bond• Mutual Fund of Large Companies
InterestSimple vs. Compound► Simple
Interest is paid on the deposit amount only
► Compound Interest is paid on deposit plus past interest payments
Simple Interest Compound InterestDeposit: $100 Deposit: $100Rate: 5% Rate: 5%
YearAccount Balance Year
Account Balance
1 $105.00 1 $105.002 $110.00 2 $110.253 $115.00 3 $115.764 $120.00 4 $121.555 $125.00 5 $127.636 $130.00 6 $134.017 $135.00 7 $140.718 $140.00 8 $147.759 $145.00 9 $155.1310 $150.00 10 $162.89
Requirement 5 – Publicly Traded Stocks► Dividend
• The portion of profit returned to the shareholders► Yield
• Dividend as a percentage of the stock price► Price / Earnings Ratio
• The ratio do the stock price to the earnings (profits) per share► Daily High / Low / Close & Volume
• Basic measures of stocks trading activity► Net Change & Percent Change
• The measure of difference in price form day to day► 52 week High & Low
• Helps determine the longer term direction of a stock and its volatility
Select Five Stocks and Complete the Table
Company Name:
Stock Ticker:
Price / Earnings Ratio:
Dividend
Yield
52 week High
52 week Low
30-Mar
High
Low
Close
31-Mar
High
Low
Close
Class Syllabus (next time)► Class #3 – 3/16/09
• Requirement 4 – Saving & Investing• Saving vs. Investing• Risk & Return
• Requirement 5 – Publicly Traded Stocks• Dividend & Yield• Price / Earnings Ratio• Daily High / Low / Close & Volume• Net Change & Percent Change• 52 week High & Low• Select five stocks and find the current price, 1-day change,
52 week high and low (homework)
• Requirement 6 - Investment Options• Stocks, Mutual Funds, Life Insurance, CDs, Savings Acct. &
US Savings Bonds• Advantages & Disadvantages