What is...
An employer sponsored retirement savings plan that allows employees to invest a portion of their paycheck into investments like mutual funds
A 401k
A type of security that gives stockholders a share of ownership in a company
Stocks
Gambling
Pro- Possibility of winning
Con- severe financial loss, debt, and potential bankruptcy.
what happened 2008 was an example of...
Depression
Individuals and businesses own and control most things.
Capitalism
A loan made by an investor to a borrower for a set period
A Bond
A loan made by an investor to a borrower for a set period
Bonds
Saving
Pro- Provides critical financial security, reduces mental stress, and offers the flexibility to pursue life goals and career changes
Con- Loss of potential social opportunities
Groceries, Gasoline, and the price of eggs going up is and example of...
Inflation
The government owns everything, and wealth is meant to be shared equally
Communism
An Individual Retirement Account (IRA) is a tax advantaged, personal savings account designed for individuals to accumulate funds for retirement, often used by those without workplace plans
A IRA
Tangible, non-traditional assets such as art, antiques, coins, wine, or memorabilia
Collectables
Investing
Pro- generating a profit or increasing in value over time, Outpacing Inflation, Higher Returns
Con- Risk of Loss and Volatility, Time and Knowledge Commitment
Limited Edition Products, Seasonal Clothing, Energy/Gasoline, Labor Market are examples of...
Supply and Demand
A dictatorship that controls the economy and society tightly
Fascism
Lifetime limits
A cap on the total lifetime benefits you may get from your insurance company
Own one or more properties, or pool your money with other investors into a fund that includes several properties
Real Estate
Bonds
Pro- Predictable income, capital preservation, and portfolio diversification
Con- Value can be eroded by inflation, changing economic environments.
A clothing store discounting unsold winter jackets to boost demand, or Uber using surge pricing to adjust rates based on high demand during rainy weather is an example of...
Microeconomics
Capitalism with more regulation and social policies
Neo-Capitalism
Vehicles for investing money
Investment pools money from many investors to buy a diversified portfolio of stocks, bonds, and other securities
Mutual Funds
Tax Deferred Account
Pro- Taxes are not paid until the individual withdraws the money from the investment, 401K, Traditional IRA
Con- Early Withdrawal Penalties, Higher Tax Rates in Retirement
Government efforts to manage inflation, fluctuations in national GDP, and changes in unemployment rates are examples of...
Macroeconomics
The government stays out of the economy as much as possible
Laissez-Faire