Intro to Investing

Once you have built up an emergency fund you should

• Try to increase it
• Start to invest
• Spend some of it

What is investing?

• —Purchase of assets with the goal of increasing future income
• —Focuses on wealth accumulation
• —Appropriate for long-term goals
• All of the above

Savings account, money- market account, CD: Products to help

• Save
• Invest

Stocks, bonds, mutual funds: Products to help us 

• Save
• Invest

Short-term needs

• Save
• Invest

Long-term growth

• Save
• Invest

What factors do we need to look at before we invest

• Liquidity 
• Safety
• Return on Investment
• All of the above

You should invest in something you don't understand

• False
• True

—the potential that an investment may fail to pay the expected return

• Return
• Risk
• Diversification 

—Spreading out your money in multiple investments

• Return
• Risk
• Diversification