LET 4, Graded Ex, NEFE Lesson 4, Investing, Making Your Money

Dave Ramsey’s Investment Philosophy A Character and Leadership Development Program

Graded Exercise #1 Use Dave’s 7 Baby Steps

Learning Objectives http://www.da veramsey.co m/specials/w elcome?ectid =gaw.davera mseybrand1&gclid =CKKYzMPB k8ICFWIA7A odsH0AaQ

Describe reasons for saving and investing

Explain

Describe how time, money, and rate of interest relate to meeting specific financial goals Describe effect of investing saving from giving up soda Describe basic investment principles Describe various savings and investments alternatives You classify your investment choices as income investment or growth investment

•

You balance the diversity of your portfolio

•

•

Income investment: A type of mutual fund that emphasizes current income, either on a monthly or quarterly basis, as opposed to capital appreciation. Growth investment: A diversified portfolio of stocks that has capital appreciation as its primary goal, with little or no dividend payouts. In finance, diversification means reducing nonsystematic risk by investing in a variety of assets

Dave Ramsey’s Investment Philosophy A Character and Leadership Development Program

http://www.daveramsey.com/special s/welcome?ectid=gaw.daveramseybrand1&gclid=CKKYzMPBk8ICFWI A7AodsH0AaQ

Graded Exercise #1 Use Dave’s Investing Calculator

Learning Objectives Describe reasons for saving and investing Describe how time, money, and rate of interest relate to meeting specific financial goals

Explain

Describe effect of investing saving from giving up soda

Explain

Describe basic investment principles Describe various savings and investments alternatives You classify your investment choices as income investment or growth investment

•

You balance the diversity of your portfolio

•

•

Income investment: A type of mutual fund that emphasizes current income, either on a monthly or quarterly basis, as opposed to capital appreciation. Growth investment: A diversified portfolio of stocks that has capital appreciation as its primary goal, with little or no dividend payouts. In finance, diversification means reducing nonsystematic risk by investing in a variety of assets

Dave Ramsey’s Investment Philosophy A Character and Leadership Development Program

Graded Exercise #1 Use Dave’s 7 Baby Steps

Learning Objectives Describe reasons for saving and investing

http://www.daver amsey.com/spe cials/welcome?e ctid=gaw.davera mseybrand1&gclid=C KKYzMPBk8ICF WIA7AodsH0Aa Q

Describe how time, money, and rate of interest relate to meeting specific financial goals Describe effect of investing saving from giving up soda Describe basic investment principles

Explain

Describe various savings and investments alternatives You classify your investment choices as income investment or growth investment

•

You balance the diversity of your portfolio

•

•

Income investment: A type of mutual fund that emphasizes current income, either on a monthly or quarterly basis, as opposed to capital appreciation. Growth investment: A diversified portfolio of stocks that has capital appreciation as its primary goal, with little or no dividend payouts. In finance, diversification means reducing nonsystematic risk by investing in a variety of assets

Dave Ramsey’s Investment Philosophy A Character and Leadership Development Program

http://www.daveramsey.com/special s/welcome?ectid=gaw.daveramseybrand1&gclid=CKKYzMPBk8ICFWI A7AodsH0AaQ

Graded Exercise #1 Use Dave’s Advice

Learning Objectives Describe reasons for saving and investing Describe how time, money, and rate of interest relate to meeting specific financial goals Describe effect of investing saving from giving up soda Describe basic investment principles Describe various savings and investments alternatives

Explain

You classify your investment choices as income investment or growth investment

•

You balance the diversity of your portfolio

•

•

Income investment: A type of mutual fund that emphasizes current income, either on a monthly or quarterly basis, as opposed to capital appreciation. Growth investment: A diversified portfolio of stocks that has capital appreciation as its primary goal, with little or no dividend payouts. In finance, diversification means reducing nonsystematic risk by investing in a variety of assets

Personal Investment Plan Graded Exercise #2

A Character and Leadership Development Program

My Personal Budget Percent

My realistic take home monthly income

Monthly Budget

Charity

10%

Savings/ Investments

10%

Housing

25%

$375

Utilities

5%

$75

$1,500 10%

$150

Clothing Medical/ Health

1.

$150

2.

Food Transportation

Criteria

$150

Forecast Personal Savings & Investments

3. 4.

5. 6.

7%

$105 7.

Personal Recreation Debts - New Car Insurance Total

My Investment Plan

A Character and Leadership Development Program

Personal Investment Plan Graded Exercise #2 Criteria

My Investment Plan

1. You select at least five products for your investment plan

1. 2. 3. 4. 5.

2. You outline your investment strategy (amount to invest, how often, and when to invest)

Give one example: • $____ = Starting balance • %___ = Rate of return • $____ = Monthly contribution • 3-years = Years plan to contribute

3. You predict the potential value of your investments three years from now

Use above example:

4. You classify for investment choices as income investment or growth investment

See criteria #1, it clearly classifies my investment choices as: • Income investment and/or • Growth investment

5. You balance the diversity of your investments

See criteria #1, it clearly demonstrates that I balance the diversity of my investments

6. Your plan is realistic for your near-term and intermediate-term goals

Explain near-term goal:

7. You explain how your investing plan aligns with your intermediate-term and long-term financial goals

Explain intermediate-term (3-12 months) goal:

$____ How much investment will be worth

Explain intermediate-term goal:

Explain long-term (1-year and beyond) goal: