Retirement Plan
Why important to invest at an early age?
Ask Mr. Nichols
What are the two types of IRAs?
Traditional IRA and Roth IRA
A _______________ is a debt investment whereby you give a business, company, or government money and in return they promise to return you that money plus ________________.
Bond, Interest
The more liquid an investment the ____________ the return.
Less
When should you start investing?
When you have an earned income.
Which IRA does Mr. Nichols suggest that young people get and why?
Roth because it is tax free when withdrawn
When in investing in bonds, Mr. Nichols suggested this type of bond? Why?
AAA, in case of collapse they pay bondholders first
The less liquid an investment the ____________ the return.
More
Find a financial advisor with the _________________
Heart of a teacher
Occurs when you and your employer (match) contribute to your retirement plan
401K
Define stocks
Share of ownership in a publicly traded company
Define Liquidity
Availability of your money
Define inflation
Ask Mr. Nichols
Spread out your investments
Diversification
Daily Double: List the investments from riskiest to least risky. (CD, Day Trading, Stocks, Bonds, Mutual Funds, Savings Account)
Day Trading, Stocks, Mutual Funds, Bonds, CD, Savings Account
The least liquid investment is
Real Estate
What is 25% of $1500
$375
You need to earn more than _____________ due to inflation.
6%
As the ___________ goes up so should the ___________.
Risk, Return
Why is real estate the least liquid investment?
Takes a long time to sell land/house and make money.