lesson 9.1 investment basics july 2011copyright © 2007-2011 … remtech, inc … all rights...

Lesson 9.1Investment Basics

July 2011 Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved 1

Introduction

Investing provides the average individual with a way to convert a relatively small sum of money into a much larger

sum of money given enough time.

The main ingredients necessary to use investing as the means to increase personal wealth are Income, Time, Will

Power and Knowledge

Investing is not just for the wealthy because changes in the economy and workplace have forced all workers to become

investors.

Knowledge of investment basics will provide the means to increase your personal wealth and help you reach your

financial goals

Many use investing as a way to increase their personal wealth and reach their financial goals.



Objectives

• Discuss why people invest their money

You should be able to do the following after completing this lesson

• Review examples of high and low liquidity investments

• Describe what a broker does

• Illustrate how the Internet and technology have affected investing

• Summarize why you should develop short and long-term financial goals

• Identify the importance of beginning to save/invest as soon as possible

• Explain why it is important to regularly add to your investments

• Define investment, investment markets, liquidity and other key terms introduced in this lesson



9.1.1 – Liquidity

• What an investment is

• What determines the liquidity of an investment

• How liquid the different investment types are

In this section, you will learn

• What liquidity is

• What types of investments do many investors hold and why

• The different types of investments



9.1.2 – Markets

• Where investors buy and sell investments

• The different types of investment markets

• Why most local banks have access to different investment options now


• How the Internet and advances in technology have changed the investment market

• What a broker is



9.1.3 – Reasons to Invest

• Why people invest

• What knowledgeable investing can do

• What factors can help increase your personal wealth

• How expenses affect personal wealth

• What the most realistic way to increase your personal wealth is




9.1.4 – Saving and Investing

• What savings are and what you should do with them• There are other forms of income outside of work

• What is important to increasing your personal wealth

• How time affects the growth rate of an investment


• The critical elements to successful investing

• How difficult is it to save money

• Investment Timing Example

You will run the following Interactive Example



9.1.5 – Types of Investments

• Why some investments may not seem like investments

• How important investment knowledge is

• The investments available to average individuals

• The common types of investments


• How to select the appropriate investments

• Investment Type Comparison Exercise

You will run the following Interactive Exercise



9.1.6 – Beginning to Invest

• How everyone is unique and can have different financial goals• Why you should learn about investing before

completing school• What you should do before selecting investments

• What is critical to successful investing

• Why the amount you invest is not as important as investing on a regular basis


• Why each person must determine the level of risk they are comfortable with

• How to access the major investment markets



Discussion Questions

Everyone seems to be harping on the importance of time when investing. Exactly why is time so important

to becoming a successful investor?

How important is investing to being able to retire in the future?

lesson 9.1 investment basics july 2011copyright © 2007-2011 … remtech, inc … all rights...

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