Day 59

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 8.2.9

  1. Watch Video 2.3
  2. Record the missing words from pages 171-174 of the textbook as they pop up on the left side of the video screen by filling in this form.  (pages 171-174) .
  3. Discussion Questions:
    1. What is a qualified plan? Give an example of a qualified plan.
    2. What does it mean to have an investment with a “tax-deferred” arrangement?
    3. What are some of the benefits of adding real estate to your investment portfolio?
    4. What are some downfalls of investing in real estate?
    5. What is the stock market?
    6. What is the primary difference between the American Stock Exchange and the New York Stock Exchange?

Assignment 8.2.10

  1. Make a copy of this Google Document.  Rename the document to My Investment-(Your Initials) and move it into your Chapter 8 folder.
  2. Complete the assignment as directed within the document.

Assignment 8.2.11

  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.