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 8.2.4
- Watch Video 2.2
- Record the missing words from pages 169-170 of the textbook as they pop up on the left side of the video screen by filling in this form. (pages 169-170) .
- Discussion Questions:
- Explain how mutual funds work.
- What is the main advantage of a mutual fund?
- What level of risk do mutual funds carry if well diversified?
Assignment 8.2.5
- Make a copy of this Google Document. Rename the document Prospectus-(Your Initials) and move it into your Chapter 8 folder. Complete the assignment as directed.
- Update your investments from Day 54. Fill in column E with today’s updated close pricing to see where your investment is at as of today.
Assignment 8.2.6
- In your Personal Finance Journal-C8 file in your Chapter 8 folder, complete the next row in the table by answering the question listed.
