1 / 14

Investments

Investments. Getting started - Choosing a Broker. Full Service Broker ex. AG Edwards, Meryll Lynch, Edward D. Jones Gives advice, makes trades, account maintenance Discount Broker- ex. Charles Schwab, Fidelity Brokerage Provides some advice, account maintenance Deep Discount Broker

deacon
Télécharger la présentation

Investments

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Investments

  2. Getting started - Choosing a Broker • Full Service Broker • ex. AG Edwards, Meryll Lynch, Edward D. Jones • Gives advice, makes trades, account maintenance • Discount Broker- • ex. Charles Schwab, Fidelity Brokerage • Provides some advice, account maintenance • Deep Discount Broker • ex. E-Trade • No advice, order execution via email or phone

  3. 5 steps to portfolio evaluation • Assess your financial situation • Define your goals • Determine the amount of investment capital required to meet your goals • Implement the changes necessary to achieve your objectives • Monitor your portfolio

  4. Reward/Risk Rule Bigger the reward - higher the risk Safer the money - less return

  5. Mutual Funds Pooling the investments of many small investors and putting that money to work in a a variety of ways

  6. Why mutual funds? • Managed by professional money managers • Diversifies investments • Cost may be lower

  7. Fundamentals of Mutual Fund Investing • Talk to a professional • Invest for the long term • Invest on a regular basis • Diversify- • Don’t put all your eggs in one basket

  8. Dollar Cost Averaging • Easiest/Safest method of investing • Invest a fixed amount in the same investment • Buy more shares when the price is low/fewer shares when price is high • Reduces errors

  9. Factors to consider • Performance • Liquidity • Safety • Minimum deposit • Convenience • Charges

  10. Factors to consider cont. • Other services • Fund objectives • Expenses • Sales load • No load funds • Front end load funds • Back end load funds • Ongoing expenses • Management fee • Rule 12b-1 fee

  11. Mutual Fund Mistakes • Does not know how much of investment will go toward the selling commission • Does not know how much money will be invested • Does not keep close account of the monthly statement

  12. Mutual Fund Checklist • NOT guaranteed or insured • AWLAYS carry investment risks • Higher rate of return involves higher risk of loss • Past performance not a reliable indicator of future performance • all mutual funds have costs that lower investment returns • Can buy some mutual funds directly

  13. IRA’s • Traditional IRA - tax deferred • Roth IRA - tax free

  14. IRA Contributions The 2001 Tax Law changed contribution amount

More Related