Investment and Money
Jaleel Gilliam
Ch. 2-04
3/3/15
02.04 Investing Basics Chart
Use this chart to take notes from the lesson. Some information has been provided for you, but you can add additional details to those sections.
Investing Basics
Type of Investment
Description—explain what it is and how it works.
Level of Risk and Potential Return—explain.
Real-life example of this investment (name or company)
Minimum investment amount or time? Easy to start or stop investment? Discuss.
CD
Is an account where a saving note is issued by a bank to a depositor who places funds in savings for a set period. Is a relatively low-risk debt instrument. The potential return is that you reieve a set amount of annual interest on the loan and when the CD contract reaches maturity you get your money. Fidelity, Wells Fargo, and a real life example is if a person purchases a 3-year certificate of deposit from Local Savings and Loan. It requires a minimum amount of money to invest, and it is a safe way to save money but it is hard to get the money out.
IRA
Individual Retirement Account (IRA)—a portion of a person's income is set aside to be withdrawn after retirement, growing interest in the meantime through investment in other securities. Employers might contribute to the account as a benefit to employees. Varies in amount of risk because it depends on the specific plan. Fidelity, T. Rowe Price, or Vanguard are examples. You can invest as much as you want and is easy to start, but you cannot take money out of the accunt until after a certain age, usually when the person has retired from work, and usually with taxes paid at that time. If you decide to withdraw from the account you will have to pay a fee.
MMA
Is a savings account that will not make much money, but more traditional savings It offers a higher rate of return to exchange for deposits that are larger than normal. For example if you find you have a certain sum of money that you do not immediately need, then you may choose to invest
Ch. 2-04
3/3/15
02.04 Investing Basics Chart
Use this chart to take notes from the lesson. Some information has been provided for you, but you can add additional details to those sections.
Investing Basics
Type of Investment
Description—explain what it is and how it works.
Level of Risk and Potential Return—explain.
Real-life example of this investment (name or company)
Minimum investment amount or time? Easy to start or stop investment? Discuss.
CD
Is an account where a saving note is issued by a bank to a depositor who places funds in savings for a set period. Is a relatively low-risk debt instrument. The potential return is that you reieve a set amount of annual interest on the loan and when the CD contract reaches maturity you get your money. Fidelity, Wells Fargo, and a real life example is if a person purchases a 3-year certificate of deposit from Local Savings and Loan. It requires a minimum amount of money to invest, and it is a safe way to save money but it is hard to get the money out.
IRA
Individual Retirement Account (IRA)—a portion of a person's income is set aside to be withdrawn after retirement, growing interest in the meantime through investment in other securities. Employers might contribute to the account as a benefit to employees. Varies in amount of risk because it depends on the specific plan. Fidelity, T. Rowe Price, or Vanguard are examples. You can invest as much as you want and is easy to start, but you cannot take money out of the accunt until after a certain age, usually when the person has retired from work, and usually with taxes paid at that time. If you decide to withdraw from the account you will have to pay a fee.
MMA
Is a savings account that will not make much money, but more traditional savings It offers a higher rate of return to exchange for deposits that are larger than normal. For example if you find you have a certain sum of money that you do not immediately need, then you may choose to invest