Welcome to Ms. Grno's class!



Name: _________________________________Date: ______________________Block: ___________Everfi Module 9: Investing51511205080Post Test Grade: _________0Post Test Grade: _________Compounding Returns How much money was the $1 million today option worth after 30 days? ______________________________How much money was the penny that doubles daily for a month worth after 30 days?______________________________Did this surprise you? Why or why not?Fill out the Chart Below How much money would you have with each different type of investment? Option 1: Investing $100/month with 5% daily compounding returns Option 2: Investing $100/month by putting it under your mattress Year 1Year 10 Year 50Which option should you choose? Why? What are the tradeoffs or opportunity costs of your choice?Video: Retirement PlansGive a brief description on how these types of retirement plans are similar and different: 401(k)403(b)Traditional IRA Roth IRA It Pays to Save Early If you have an annual salary of $40,000 and invest $2000 a year with an annual rate of return of 8% and you start saving when you are 20 years old…How much money will you have saved by the time you are 35 (15 years later): ________________________How much money will you have saved by the time you are 50 (30 years later): ________________________How much money will you have saved by the time you are 65 (45 years later): ________________________Total retirement savings if you start at 20? __________________________________Total retirement savings if you start at 35? __________________________________Total retirement savings if you start at 50?___________________________________Did see the numbers change your mind about when you want to start saving money? Why or why not?Video: What is Investing?What is investing?How is savings different from investing?With greater risks come ______________________________________When it comes to investing there are _____ _________________________________What is a brokerage account?What are the four types of common investment options? ____________________________________________________________________________________________________________________________________________________________________________Answer the questions in the chart below: Investment OptionsQuestions Stocks What are stocks? Why is buying stock in a growing company a good investment? What are dividends? What are the board of directors? Bonds What are bonds? What’s a coupon? What is a treasury bond? What is a municipal bond?Do companies issue bonds?Mutual Funds What are mutual funds? Index Funds What is an index fund? Investing Options Practice Circle the correct answer: When a _______________ matures, you receive your entire investment back plus any remaining interest. Bond Mutual FundStock Sometimes a ________________ will pay you dividends Bond Mutual FundStock Video: Why Issue Stocks and Bonds?Why do companies issue stock? Why might a town issue bonds? Where are stocks sold?Stock Exchanges and Indexes What does NASDAQ stand for and what is it? What does NYSE stand for and what is it? What is the S&P 500? What is the Dow Jones Industrial Average?Video: Risk vs Return What is risk? Why are risky investments sometimes called “volatile”? What is return?Generally, the __________________ the risk, the ______________________ the return or loss and the ___________________ the risk, the ______________________ the return. Why do savings account have low interst rates? Risk vs Return Matching ______________________ are considering the highest risk. Why? ________________________________ are considered lower risk than stocks. Why? _______________________ are the lowest risk as long as they are backed by quality borrower. Why?Rank the following from the highest potential return (1) to the lowest (3):Mutual Fund _______Stock _______Bond _______Justify your ordering: Video: Why Diversify? What does diversification mean? Why do you want a combination of high and low risk investment options? What is the tradeoff with diversification?Diversify Your PortfolioHow would adjusting the percent of stocks in your portfolio affect risk level?If 25% of your portfolio was invested in stocks, what level of risk would it be? ___________________If 50% of your portfolio was invested in stocks, what level of risk would it be? ___________________If 75% of your portfolio was invested in stocks, what level of risk would it be? ___________________How would adjusting the percentage of treasury bonds in your portfolio affect risk leve?If 25% of your portfolio was invested in treasury bonds, what level of risk would it be? ___________________If 50% of your portfolio was invested in treasury bonds, what level of risk would it be? ___________________If 75% of your portfolio was invested in treasury bonds, what level of risk would it be? ___________________Final Thoughts How did your attitude towards saving and investing change after viewing this module? Will you invest in the future? Will you start saving earlier? What will you invest in? How will you save for retirement? ................
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