Day 62

Lesson Objectives

  • Explain how investing builds wealth and helps meet financial goals.
  • Examine the relationship between diversification and risk.
  • Identify regulatory agencies and their functions.
  • 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.
  • Analyze the components of an employer benefits package.
  • Explain how compound interest works.

Assignment 8.R.1

  1. Make a copy of this Google Document.  Rename the file Wealth Pyramid-(Your Initials) and move it into your Chapter 8 folder.
  2. Directions:
    1. Put four ideas from the chapter in the bottom of the pyramid in the red shapes.  These should be your four most important ideas.
    2. Choose a classmate and discuss/compare your ideas.  Come to an agree on the two most important of the original four ideas that you each had.  Write them in the middle level of the pyramid in the yellow shapes.
    3. Choose a different classmate and repeat step two.  Each person should write the most important idea at the top level of their pyramid in the blue shape.
  3. Thinking about what you wrote at the top of the pyramid, answer the questions at the bottom of your document.

Assignment 8.R.2

  1. Make a copy of this Google Document.  Rename the document to Retirement Planning-(Your Initials) and move it into your Chapter 8 folder.
  2. Complete the document based on the directions within the document.