Where to keep your money safely

Are you a risk-taker?1. When it comes to making the best choice,

my luck has been:A. Rotten B. Average

C. Better than average D. Terrific

2. Most of the good things that have happened to me have been because:

A. I planned them

B. I was able to exploit opportunities that arose

C. I was in the right place at the right time

D. Someone looks out for me

Are you a risk-taker?3. If a stock doubled in price five months after

I bought, I would:A. Sell all my stock B. Sell half my stock

C. Sit tight D. Buy more

4. Making decisions about saving and investing on my own is something that I:

A. Never do B. Occasionally do

C. Often do D. Almost always do

Are you a risk-taker?

5. If my boss were to tell me to do something at work that I know is a bad idea, I would:

A. Say directly that it was a mistake

B. Get co-workers to join me in opposing the idea

C. Do nothing unless the boss brings it up again

D. Do it anyway

Are you a risk-taker?6. For me to put 10% of all of my savings &

belongings into a new venture that has a 75% chance of success, the potential profit would have to be at least:

A. The same as the amount I had risked in investing in the venture

B. Three times the amount

C. Five times the amount

D. No amount would be worth the risk

Are you a risk-taker?

7. When I see people involved in sports such as hang gliding or bungee jumping, I:

A. Think they are idiots

B. Admire them, but would never participate

C. Wish I could try such sports just once

D. Think seriously about participating myself

Are you a risk-taker?8. If I held a finalist ticket in a lottery with a 1

in 5 chance of winning the $50,000 prize, the smallest amount I would consider selling my ticket for before the lottery drawing would be:

A. $30,000

B. $17,000

C. $13,000

D. $10,000

Are you a risk-taker?9. In the past, I have spent $10 on one or

more of the following activities: bet on my own recreational activities such as golf or poker, or bet on professional sports. (Choose the one that best applies)

A. I have done two or more of these in the past year

B. I have done one of these in the past year

C. I have done one of these a few times

D. I have never done any of these

Are you a risk-taker?10. If I had to make a critical decision

involving a large amount of money, I would probably do one or more of the following (circle all that apply):

A. Delay the decision

B. Have someone else make the decision for me

C. Ask others to share in the decision

D. Plan strategies that would minimize any lose

Are you a risk-taker scoringFor questions 1, 3, 4:

A = 1 point B = 2 points

C = 3 points D = 4 points

For questions 2, 6, 8, and 9:A = 4 point B = 3 points

C = 2 points D = 1 points

Question 5 & 7, not associated with investment risk

For question 10

Count the number you circled and subtract that number from 5. That is your score

Are you a risk-taker?

• 8 to 16 points: Conservative investor; you are willing to take a few risks

• 17 to 24 points: Average investor; you are willing to take average risks

• 25 to 32 points: Aggressive investor; you are willing to take greater-than-average risks

Where you can keep your $ at the bank

• Safety Deposit Box• A fireproof metal strongbox (usually in a bank) for

storing valuables

• Saving Accounts• A bank account that earns interest

• Checking Accounts• An account where the holder can write checks• Pay less interest than savings accounts, or none at

all

Other accounts at the bank

• Certificate of Deposit• Time deposit, which is insured, with a specific, fixed

term, and, usually, a fixed interest rate• At Chase - $1,000 minimum deposit

• CD Term – APY: 6 to 12 Month = .25%

18 to 24 Month = .50% 36 Month = 1.01%

• Money Market• Deposit account, relatively high rate of interest,

requires a higher minimum balance to earn interest or avoid monthly fees

Secure places from the US Treasury• Treasury Bills

• Short-term securities (few days to 1 year)• Sold at a discount from face value

• Treasury Notes• Interest every 6 months, Maturities in 2, 3, 5, 7, &

10 years

• Treasury Bonds• Interest every 6 months, Mature in 30 years

• I Savings Bonds & EE/E Savings Bonds• Earn interest protected / based on interest &

market

Precious Metals & Stones• Silver: $28.94 per ounce

• 1st Tri $18.68 per ounce

• Gold: $1,392.38 per ounce• 1st Tri $1,244.69 per ounce

Shop for a bank

• Alone or with partner, look up information about banks

• Complete Financial Portfolio Worksheet & answer the questions• Note: If do not want to show my your Net Worth

ask for a second copy and only answer the questions on the one you will turn in

Net Worth ExampleItem Value

Liquid Assets

Checking accounts $2,000

Savings accounts $5,000

Money Market account $5,000

Other

Assets (Personal Possessions of value)

Investments

Mutual Funds $10,000

Jewelry $6,000

Video Games & System $500

Car $1,000

Total Assets $29,500

Liabilities

House $10,000

Total Liabilities $10,000

NET WORTH =(Assets – Liabilities)

$19,500