Movie 3

13
Key Concepts of Saving and Investing How to Save for Your Future

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Transcript of Movie 3

  • 1. Key Concepts of Saving and Investing
    How to Save for Your Future

2. Key Concepts of Saving & Investing
Key #1:Pay yourself first
Key #2:Set goals that will inspire success
Key #3: Dont take unnecessary risks
Key #4: Put time to work for you
Key #5: DiversifyDiversifyDiversify
3. Key Concepts of Saving & Investing
Key #1:Pay yourself firstMake investing a habit.
$5,000
$5,000
$5,000
Initial balance
Interest per year
2.16%
8%
10%
Deposit per month
$0
$380
$279
Number of years
20
20
20
Future Value
$7,699
$250,000
$250,000
4. Key Concepts of Saving & Investing
Key #2:Set goals that will inspire success
5. Setting SMART Financial Goals
Specific
Time Limit
Relevant
Measurable
Attainable
Short-Term Goals=Within one year
Medium-Term Goals=Within next 2-5 years
Long-Term Goals=More than 5 years from now
6. Key Concepts of Saving & Investing
Saving and investing choices for different types of goals:
Short-term goals
Certificates of Deposit
Money Market Funds
Medium-term goals
Longer-term Certificates of Deposit
Targeted Bonds

  • Long-term goals

7. Equity Mutual Funds 8. Corporate Stocks 9. Long-term corporate/government bonds 10. IRAs, 401(k)s, Keogh, 403(b)s