Stocks vs. Bonds

Stock

• units of ownership in a particular company

• Shareholders, give money to a company in exchange for part ownership in the company

• a debt security in which an investor loans money to a company or government.

• using money to create wealth over time

Savings

• Funds you may need to access in the short term, is less than two years.

• a retirement plan that is sponsored by employers, where employees have a percentage of their salary deducted from paycheck each pay period.

• units of ownership in a particular company

• using money to create wealth over time

401(k)

• a retirement plan that is sponsored by employers, where employees have a percentage of their salary deducted from paycheck each pay period. 

• Funds you may need to access in the short term, is less than two years.

• a debt security in which an investor loans money to a company or government.

• Shareholders, give money to a company in exchange for part ownership in the company

Investing

• a retirement plan that is sponsored by employers, where employees have a percentage of their salary deducted from paycheck each pay period.

• Funds you may need to access in the short term, is less than two years.

• using money to create wealth over time

• a debt security in which an investor loans money to a company or government.

Bond

• a retirement plan that is sponsored by employers, where employees have a percentage of their salary deducted from paycheck each pay period.

• using money to create wealth over time

• a debt security in which an investor loans money to a company or government.

• units of ownership in a particular company

What would be a type of investment account that you would put retirement funds in? How does continually putting money in this account support you in retirement?”

What is the difference between a stock and a bond? What holds more risk– a stock or a bond?”