Investing Retirement Day 1 Explain how investing builds

Investing & Retirement: Day 1 ��Explain how investing builds wealth and helps meet financial goals. ��Examine the relationship between diversification and risk.

Day 1: Timeline Warm Up: 5 min. Video 1. 1: 15 min. Video 1. 2: 15 min. Key Terms: 15 min. Four Corners Carry-out: 5 min. Warm-up: How does having debt limit your investment options?

Key Terms Diversification: The practice of dividing the money a person invests between several different types of investments in order to lower risk Investing: The process of setting money aside to increase wealth over time for long-term financial goals such as retirement Investments: Account or arrangement in which a person puts his/her money for long-term growth; invested money should not be used for a suggested minimum of five years Liquidity: Quality of an asset that permits it to be converted quickly into cash without loss of value; availability of money Portfolio: A list of your investments Risk: Degree of uncertainty of return on an asset; in business, the likelihood of loss or reduced profit Risk-return ratio: Relationship of substantial reward compared to the amount of risk taken Share: Piece of ownership in a company, mutual fund or other investment Stocks: Securities that represent part ownership or equity in a corporation Tax-favored dollars: Money that is invested, either tax deferred or tax free, within a retirement plan

Investing & Retirement: Day 2 ��Evaluate investment alternatives: money markets, bonds, single stocks, mutual fund, annuities, and real estate. ����Identify different types of retirement plans.

Day 2: Timeline Warm Up: 5 min. Video Part 2. 1: 15 min. Fund Game Activity: 35 min. o Partner o Computer Warm-up: What are some of the dangers when using borrowed money to invest?

Investing & Retirement: Day 3 ��Understand how pre-tax and after-tax investments work. ��Understand how the stock market works.

Day 3: Timeline Warm Up: 5 min. Video 2. 2: 15 min. Stocks v. Mutual Funds: 15 min. o Partner Name That Investment Activity: 10 min. o Partner The Flaw: 10 min. Warm-up: How do taxes affect the rate of return on investments? Some investments are funded with after-tax money and some are tax-deferred, meaning you don’t pay taxes until you withdraw money. A tax-deferred treatment allows the money you would have paid in taxes to grow.

Stocks v. Mutual Funds Venn Diagram Single Stocks Mutual Fund • One Company • High Degree of Risk, No Diversification • Brokers • Common Person Averages 7% • Publically Traded • Investment • Profit dividends when the company profits • Traded in shares • 90 -200 Companies • Diversification lowers the risk • Investors pool their money • Professional Portfolio Managers • Many types of investments • 97% of a 5 year period have made money • 100% of a 10 year period has made money • Not difficult to find one that averages 12%

Investing & Retirement: Day 4 ��Analyze the components of employer benefits package. ��Explain how compound interest works.

Day 4: Timeline Warm Up: 5 min. Video 2. 3: 15 min. Video 3. 1: 15 min. Reading a Prospectus Activity: 20 min. o Partners Warm-up: What are the typical components of an employer benefits package? Retirement plans, savings plans, insurance, leave (sick, vacation, etc. ), stock options, educational reimbursement, incentive plans…etc.

Investing & Retirement: Day 5 Asses student learning through a quiz.

Day 5: Timeline Warm Up: 5 min. Chapter 2 Test: 30 min. The Flaw: 20 min. Warm-up: How does compound interest work?