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. Select one of the Ask Dave radio calls within the “Investing” category label shown below and listen to it:
   • Count Employer Contribution?
   • Dave Doesn’t Have a System
   • Cost of Opportunity
2. 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 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.