Day 57

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

1. Watch Video 2.2
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) .
3. Discussion Questions:
   1. Explain how mutual funds work.
   2. What is the main advantage of a mutual fund?
   3. What level of risk do mutual funds carry if well diversified?

Assignment 8.2.5

1. 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.
2. 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

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.