Saving & Investing

Avoid that“sucks-to-be-broke”

feeling.

Pay yourself first!

Your face

here!

save this/week

interest 10 yrs equals

$7 5% $4,807

$14 5% $9,615

$21 5% $14,422

$28 5% $19,229

$35 5% $24,036

$50 5% $130,295 @ 25 years

Types of savings accounts

Passbook----------------------------

StatementAccount

----------------------------

InterestEarning

Money Market Account

Certificate of Depositor Term Share Certificate

X =X

$100 5% 1 yr. $105

Account will accrue $5

Calculate Simple Interest

X =X

$105 5% 1 yr. $110.25

Account will accrue 5% at $110.25 for year three!

Calculate Compound Interest

When choosing a savings account…

Truth in Savings Act

Years to Double Rate to Double

72Interest=Years

72Yrs. to double

=Required Rate

Savings Bonds

Corporate Bonds

Federal & Municipal Bonds

Mutual Funds

• Balanced• Global• Municipal• Income• Growth• Regional• Industry

Stocks

Real Estate

Retirement Funds

StartingEarly

StartingLater

A Lifetimeof Investing

Age Invested Age Invested Age Invested 16 $1,000 16 $1,000 17 $1,000 17 $1,000 18 $1,000 18 $1,000 19 $1,000 19 $1,000 20 $1,000 20 $1,000 21 $1,000 21 $1,000 22 $1,000 22 $1,000 23 $1,000 23 $1,000 24 $1,000 24 $1,000 25 $1,000 25 $1,000

26 $1,000 26 $1,000 27 $1,000 27 $1,000 28 $1,000 28 $1,000 29 $1,000 29 $1,000 30 $1,000 30 $1,000 31 $1,000 31 $1,000 32 $1,000 32 $1,000 33 $1,000 33 $1,000 34 $1,000 34 $1,000 35 $1,000 35 $1,000 36 $1,000 36 $1,000 37 $1,000 37 $1,000 38 $1,000 38 $1,000 39 $1,000 39 $1,000 40 $1,000 40 $1,000 41 $1,000 41 $1,000 42 $1,000 42 $1,000 43 $1,000 43 $1,000 44 $1,000 44 $1,000 45 $1,000 45 $1,000 46 $1,000 46 $1,000 47 $1,000 47 $1,000 48 $1,000 48 $1,000 49 $1,000 49 $1,000 50 $1,000 50 $1,000

*estimate assumes 5% interest w/$1,000 contributed yearly before interest is applied.

total investment$10,000

total interest earned$39,240

at age 50$50,240

total investment$25,000

total interest earned$27,500

at age 50$53,500

total investment$35,000

total interest earned$64,350

at age 50$100,350

Starting Early

Starting Later

A Lifetime of Saving

Investment: $10,000

Interest Earned: $39,240

Investment: $25,000

Investment: $35,000

Interest Earned: $27,500

Interest Earned: $64,350

Instrument Maturity Risk Yield Minimum Balance

Taxable?

Savings Account

Immediate None if insured Low $5 Yes

Certificate of Deposit

90 days or more None if insured Moderate Varies Yes

Bonds

Corporate 5–30 years Some Moderate $1,000 Yes

Municipal 1–20 years Some Moderate $5,000 No federal,some states

Stocks Immediate Low to high Low to high Varies Yes

U.S. treasury

Bills 1 year or less None Moderate $10,000 Federal only

Notes 1–10 years None $1,000 Federal only

Bonds 10–30 years None $1,000 Federal only

Mutual Funds Varies Low to high Moderate Varies Usually

Retirement Funds

When buyer is60 years old

Low Moderate Varies At maturity

Investment Fraud

www.FTC.gov

www.Fraud.org

www.SEC.gov

www.NASAA.org

Learn more & stay connected!

www.MyGenFCU.org