Day 56

Lesson Objectives

  • Evaluate investment alternatives: money markets, bonds, single stocks, mutual funds, annuities, and real estate.
  • Explain the Rule of 72.
  • Identify different types of retirement plans.
  • Explain how taxes affect the rate of return on investments.
  • Understand how pre-tax and after-tax investments work.
  • Understand how the stock market works.
  • Be familiar with the various retirement account tax treatments.
  • Develop a plan for investing; describe how to buy and sell investments.

Assignment 8.2.1

  1. Watch Video 2.1
  2. Record the missing words from pages 167-168 of the textbook as they pop up on the left side of the video screen by filling in this form.  (pages 167-168) .
  3. Discussion Questions:
    1. Why does a CD have a slightly higher interest rate than a typical savings account at a bank?
    2. Which carries higher risk: money market accounts or single stocks?
    3. Do bonds typically yield high or low returns?

Assignment 8.2.2

  1. Make a copy of this Google Document, rename it LFPP-(Your Initials), and move it into your Chapter 8 folder.  Use the information in the linked radio call to answer the questions in the document.

Assignment 8.2.3

  1. In your Personal Finance Journal-C8 file in your Chapter 8 folder, complete the next row in the table by answering the question listed.
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