investing . if you invest $1,000 each year what are some ways to invest?
TRANSCRIPT
Interest Rate 5 yrs. 10 yrs. 15 yrs. 20 yrs.5% $5,525 $12,578 $21,578 $33,0656% 5,637 13,181 23,276 36,7867% 5,751 13,816 25,129 40,9958% 5,867 14,487 27,152 45,7629% 5,985 15,193 29,361 51,160
10% 6,105 15,937 31,772 57,25711% 6,228 16,722 34,405 64,20312% 6,353 17,548 37,279 75,052
If you invest $1,000 each If you invest $1,000 each yearyear
Contributions made only Contributions made only between 22 & 30 (9 years)between 22 & 30 (9 years)
$2,000 contributed each year
Total Investment of $18,000
At 9% by the age of 65
You will have $579,471
Contributions made only Contributions made only between 31 & 65 (35 between 31 & 65 (35
years)years)$2,000 contributed each year
Total investment $70,000
At 9%, by the age of 65
You will have $470,249
Option One: Fixed Option One: Fixed ReturnReturn
I nvestment$
FixedRateof
Return
Value in25 years
100,000 8% 684,850
Option two: Diversified Option two: Diversified PortfolioPortfolio
I nvestment $ FixedRate ofReturn
Value in 25years
20000 Total Loss 0
20000 0% 2000020000 5% 67730
20000 10% 216690
20000 15 658380
Now What?Now What?
How does diversification help limit risk?
How does age and financial situation affect how you make investment decisions?
Homework:Homework:Bring in a current issue of Bring in a current issue of
the newspaper.the newspaper.