saving & investing: avoid that 'sucks-to-be-broke' feeling
DESCRIPTION
This presentations will help college students learn the ins and outs of saving and investing.TRANSCRIPT
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Saving & Investing
Avoid that“sucks-to-be-broke”
feeling.
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Pay yourself first!
Your face
here!
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save this/week
interest 10 yrs equals
$7 5% $4,807
$14 5% $9,615
$21 5% $14,422
$28 5% $19,229
$35 5% $24,036
$50 5% $130,295 @ 25 years
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Types of savings accounts
Passbook----------------------------
StatementAccount
----------------------------
InterestEarning
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Money Market Account
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Certificate of Depositor Term Share Certificate
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X =X
$100 5% 1 yr. $105
Account will accrue $5
Calculate Simple Interest
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X =X
$105 5% 1 yr. $110.25
Account will accrue 5% at $110.25 for year three!
Calculate Compound Interest
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When choosing a savings account…
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Truth in Savings Act
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Years to Double Rate to Double
72Interest=Years
72Yrs. to double
=Required Rate
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Savings Bonds
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Corporate Bonds
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Federal & Municipal Bonds
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Mutual Funds
• Balanced• Global• Municipal• Income• Growth• Regional• Industry
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Stocks
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Real Estate
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Retirement Funds
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StartingEarly
StartingLater
A Lifetimeof Investing
Age Invested Age Invested Age Invested 16 $1,000 16 $1,000 17 $1,000 17 $1,000 18 $1,000 18 $1,000 19 $1,000 19 $1,000 20 $1,000 20 $1,000 21 $1,000 21 $1,000 22 $1,000 22 $1,000 23 $1,000 23 $1,000 24 $1,000 24 $1,000 25 $1,000 25 $1,000
26 $1,000 26 $1,000 27 $1,000 27 $1,000 28 $1,000 28 $1,000 29 $1,000 29 $1,000 30 $1,000 30 $1,000 31 $1,000 31 $1,000 32 $1,000 32 $1,000 33 $1,000 33 $1,000 34 $1,000 34 $1,000 35 $1,000 35 $1,000 36 $1,000 36 $1,000 37 $1,000 37 $1,000 38 $1,000 38 $1,000 39 $1,000 39 $1,000 40 $1,000 40 $1,000 41 $1,000 41 $1,000 42 $1,000 42 $1,000 43 $1,000 43 $1,000 44 $1,000 44 $1,000 45 $1,000 45 $1,000 46 $1,000 46 $1,000 47 $1,000 47 $1,000 48 $1,000 48 $1,000 49 $1,000 49 $1,000 50 $1,000 50 $1,000
*estimate assumes 5% interest w/$1,000 contributed yearly before interest is applied.
total investment$10,000
total interest earned$39,240
at age 50$50,240
total investment$25,000
total interest earned$27,500
at age 50$53,500
total investment$35,000
total interest earned$64,350
at age 50$100,350
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Starting Early
Starting Later
A Lifetime of Saving
Investment: $10,000
Interest Earned: $39,240
Investment: $25,000
Investment: $35,000
Interest Earned: $27,500
Interest Earned: $64,350
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Instrument Maturity Risk Yield Minimum Balance
Taxable?
Savings Account
Immediate None if insured Low $5 Yes
Certificate of Deposit
90 days or more None if insured Moderate Varies Yes
Bonds
Corporate 5–30 years Some Moderate $1,000 Yes
Municipal 1–20 years Some Moderate $5,000 No federal,some states
Stocks Immediate Low to high Low to high Varies Yes
U.S. treasury
Bills 1 year or less None Moderate $10,000 Federal only
Notes 1–10 years None $1,000 Federal only
Bonds 10–30 years None $1,000 Federal only
Mutual Funds Varies Low to high Moderate Varies Usually
Retirement Funds
When buyer is60 years old
Low Moderate Varies At maturity
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Investment Fraud
www.FTC.gov
www.Fraud.org
www.SEC.gov
www.NASAA.org
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Learn more & stay connected!
www.MyGenFCU.org
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