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.
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