Workshop on Personal Finance
Week 4

Basic Investment Concepts
Compounding
interest
dividends reinvest
dollar cost averaging
Inflation
spending power of money

Life/Health Insurance

Home/Auto Insurance

Investments

Basic Investment Concepts

College Education

Retirement

Compounding Interest
$1,000 over 10 years @ 8% per year

Inflation
$1,000 over 10 years @ 3% per year

Types of Investments
Risk / Return pyramid
Build your base
CD’s & money market funds
Bonds / mutual funds
Stocks / mutual funds

Mutual Fund Companies Stocks

Mutual Fund Companies Bonds

How to Invest
Pre-Tax vs. after-tax
403 (b), 401 (k)
Deferred Compensation
Methods:
payroll deduction
checkbook withdrawal
payment of premiums
function of budget / pay first
Top

<Back Next>