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Unformatted text preview: ----------------------Personal Finance Bonds, Stocks, mutual Funds 9-25-07 Investment Fundamentals The world has changed: YOU have become responsible. Retirement Planning College planning for children Estate planning for family Investing vs. Savings Bonds, stocks, and mutual funds are right above savings plan on financial pyramid. Must know right time in YOUR life to invest Know Yourself... Weekend spending Eating "out" Loaning money! When did you become the banker Relationships Emotional Spending After spending, I felt good. It helps me relieve tension." Actions = Values STRESS!! What is your GOAL? When do you need the money? Short Term? (Use more secure plan) Long Term? (Become more risky) Conservative? Aggressive? Return Long-term: Inflation o Risk Short-term Volatility Stock Market is for Long-Term investment Global Investments: must look at political issues Strategies Portfolio Diversification (Insurance) Asset allocation $$$ Cost Averaging 70% Cautions: Inflation 3% 6% 14% Taxes 10, 15, 25, 28, 33, 35 Costs- Broker, fees (with mutual fund) o Active vs. Passive investing But Before we start.... Financial statement Credit Savings Bonds FOR EXAM:::: bring calculator, today's notes NOT on exam, know how FICO score is calculated, know credit laws ...
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This note was uploaded on 03/19/2008 for the course FCE 238 taught by Professor Boyce during the Fall '07 term at Michigan State University.
- Fall '07