Investing by liuqingyan


    What you will learn...

   How to set Financial Goals
   Learn about your Investment Risk Tolerance
   Asset Classes: Stocks, Bonds, Mutual Funds,
   Asset Allocation
   Bonus Feature: Special Investments for
         Setting & Achieving
         Financial Goals
              What Are Goals?
   Goals should be specific and include
    what you want to do or achieve. You
    shouldn’t reach for goals that are not
    related to your personal values.
        Setting & Achieving
        Financial Goals
               Developing a Plan
   Before doing anything, think about your
    future as if it were now.
                Plan your Attack
   Know when you want to achieve your
    goal, what you need to achieve it and
    the steps required to reach it.
 Investment Risk Tolerance
Investment Risk Tolerance is the amount of
  money you are willing to risk in investments
     in hope of achieving financial growth.

    There are four types of risk levels:
             1.   Conservative
      2.   Moderately Conservative
        3.  Moderately Aggressive
               4.  Aggressive
    Investment Risk Tolerance
      Conservative         Moderately Conservative
   When you are            You are willing to risk
    uncomfortable with       some of your money in
    taking a risk which      order to achieve a
    may cause the value      greater long-term
    of your investments to   growth.
    drop.                   Although, you do keep
   You are willing to       most of your money in
    accept a lower growth    stable “low risk”
    rate on your             investments.
    investments in order
    to reduce risk.
     Investment Risk Tolerance
Moderately Aggressive            Aggressive
 You keep most of your      You keep all of your
  money in “high risk”        money in “high risk”
  investments.                investments.
 Although, you still        You are willing to
  keep some of your           risk everything for a
  money in “low risk”         higher long-term
  investments.                financial growth
                 Asset Allocation
   Diversification which is the act of spreading your assets
    out over a number of investments is the best way to
    lower your risks.
   There are two different account types which let you
    further diversify your investments. One way is to find a
    number of accounts that are spread among many types
    of stocks and bonds. Another way to do this is to
    combine many different accounts.
   Some mistakes investors make are putting all of their
    assets in to soon and into only one stock or bond.
    Some people just do not invest enough money to begin
         Asset Allocation
   Reallocation or moving dollars between
    specified account categories (such as
    salaries and equipment) or moving
    resources (such as salaried positions)
    from one cost center to another.
   This should be done when there has
    been long term changes in the
    economy, new accounts and changes in
    your money intake.
       Asset Classifications
        There are three types of stocks:
            Bills, Notes, and Bonds
   Bills- Mature in less than a year.
   Notes- Mature in 1-10 years.
   Bonds- Mature in 10 or more years.
         Asset Classifications
   You should update and change your
    portfolio every 6 months.
   If you allow your stocks to mature at a
    longer period of time, they will bring you
    a larger profit.
   Property that is considered an asset:
    Homes, Cars, Valuable (un-personal)
Special Investments for College

    In investing for your future you shouldn’t
    rely on stocks alone.
    College will be a big expense in the future
    that you must plan for. The cost of college
    rises continuously every year.
    Relying on “High Interest” Investing can
    cause you to lose a significant amount of
    money in a short period of time.
    Special Investments for

         Gross Stock or Gross Stock Funds:
   Generally pay low or no dividends
   Sizeable returns, but are very volatile
         Zero Coupon Bonds or Bond Funds:
    A U.S. Treasury Bond that costs less than
    their face value, does not collect interest.
   When mature can be collected for the face
    value of the bond.
    Special Investments for
                     529 Plan:
        (Specific Guidelines For Your State)
   Typically funds are invested in a
    combination of stocks, bonds, mutual
    funds, and CDs.
   Earnings are tax free as long as the money
    is kept for educational purposes.
Special Investments for
                  U.S. Savings Bonds
    Issued by the U.S. Government and paid on
    a low interest rate, over a 5 year period of
    time. (Tax Free)
        Coverdell Education Savings Account
   Families may deposit up to $2,000 a year into
    a “Tax Free” College Account.
   Just like the 529, the individual makes a
    choice of investments.
         Kenny Janson- Setting & Achieving Financial Goals

           Jaramieh Kaiser- Investment Risk Tolerance

Mitchell Van Boxel- Asset Classifications and Special Investments for

                  Jessica Harper- Asset Allocation

          Written, Produced, and Designed by:
          Kenny Janson and Jaramieh Kaiser

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