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23 Cards in this Set
- Front
- Back
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Annuities
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savings accounts with insurance companies
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International growth stock mutual funds
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stocks from overseas companies
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Investment rule 1
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Never invest with borrowed money.
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Commodities
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investments like oil and gold
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Investment Rule
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You should always check the 5-10 year track record.
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Bond
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a debt instrument where a company owes you money
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Mutual fund
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where investors pool their money
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liqiudity
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the availability of your money
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Risk Return Ratio
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with investments, as the risk goes up, so should the return
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Savings
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used for short term investment
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Investment Rule 3
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never invest only for tax savings
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Investing in Stocks
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High degree of risk
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Mutual Funds
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a collection of money from different investors, which is used to purchase stocks, bonds, or other investments, managed by a fund manager
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KISS rule
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Keep things simple
Don't buy anything you don't understand |
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Aggressive Growth
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Funds that are the most risky
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Stock
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piece of ownership in a company
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Where do the most aggressive mutual funds come from?
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Companies that are younger and growing
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What is the best option if you begin to lose money in your mutual fund?
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Leave it alone
Continue to invest in the fund |
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Growth Funds
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Mid-Cap
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Aggressive Growth Funds
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Small Cap
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Growth and Income Funds
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Large-Cap
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Risks to consider when investing
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Loss of money
Inflation Liquidity of Money |
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Standard Mutual Fund Diversification
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25% Growth and Income
25% Growth 25% Aggressive 25% International |
