8 4923 4644 400 3597 300 source survey of consumer

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Unformatted text preview: usehold Net Worth (in thousands of 2007 dollars) 500 498.8 492.3 464.4 400 359.7 300 Source: Survey of Consumer Finances 200 100 91.3 101.2 102.2 126.4 77.2 0 1998 2001 Mean 45 40.7 2004 2007 42.2 40 35.7 35 Financial Assets as a Share of Total Assets 2010 Median 37.9 33.9 30 25 20 Source: Survey of Consumer Finances 15 10 5 0 1998 2001 2004 2007 2010 Percentage 6 2/20/2014 When you buy a bond you're essentially giving a loan Most Common Household Financial Investment Options • Government Bonds Municipal Bonds are interest earned tax free • U.S. savings bonds • Municipal bonds If you hold stock you have ownership of part of the company • Corporate Bonds (People who holds bonds get paid before people who hold stocks) • Stocks Mutual funds are managed by a professional in order to achieve a large goal of the fund. (real-estate • Mutual Funds investment funds) Get a lower rate of return. Type of Financial Asset Breakdown of Financial Assets within Households as a Percentage of Total Financial Assets Source: Survey of Consumer Finances 1998 2001 2004 2007 2010 Transaction Accounts 11.4 11.4 13.2 11.0 13.3 Certificates of Deposit 4.3 3.1 3.7 4.1 3.9 Savings Bonds .7 .7 .5 .4 .3 Bonds 4.3 4.5 5.3 4.2 4.4 Stocks 22.7 21.5 17.6 17.9 14.0 Pooled Investments 12.4 12.1 14.7 15.9 15.0 Retirement Accounts 27.6 28.9 32.0 34.6 38.1 Other 16.6 17.8 13.0 11.9 11.0 Median...
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This document was uploaded on 03/27/2014.

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