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Personal Finance:  Another Perspective Investments 1:  Before you Invest
Objectives A.  Know what to do before you invest B.  Understand the ten principles of successful investing C.  Understand the major asset classes D.  Review the risk and return history of the major asset classes
Teaching Investments  (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Teaching Investments  (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A.  Questions to Ask Before you Invest ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Before You Invest: The Hourglass Top 4. Have you written down your personal goals, do you live on a budget, and do you have a well-written investment plan? If you can answer these affirmatively, you are ready to invest ! 3. Are you out of high-interest rate credit card and consumer debt? 2. Do you have adequate health and life insurance? 1. Are your priorities in order and are you “square” with the Lord?
Before you Invest  (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
B. Understand the 10 Principles of Successful Investing ,[object Object],[object Object],[object Object],[object Object],[object Object]
Principles for Successful Investing  (continued) ,[object Object],[object Object]
Principles for Successful Investing  (continued) ,[object Object],[object Object],[object Object]
Principles for Successful Investing  (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Principles for Successful Investing  (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Principles for Successful Investing  (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Principles for Successful Investing  (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Principles for Successful Investing  (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Principles for Successful Investing  (continued) ,[object Object],[object Object],[object Object],[object Object]
Principles for Successful Investing  (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Principles for Successful Investing   (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Principles for Successful Investing  (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Principles for Successful Investing  (continued) ,[object Object],[object Object],[object Object],[object Object]
Principles for Successful Investing  (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Principles for Successful Investing  (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object]
D. Review the Risk and Return History  of the Major Asset Classes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Risk  (continued)   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Investing versus Gambling ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Return ,[object Object],[object Object],[object Object],[object Object],[object Object]
Return  (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Returns  (continued) ,[object Object],[object Object],[object Object]
Returns:  Asset Class Returns
Returns: Historical Risk and Return
Returns: S&P500 1-Year since 1926
Returns:  S&P500 5 Year Returns
Returns: S&P500 10 Year Returns
Equity Asset Class Returns and Risk  (through 2008)
Things Learned ,[object Object],[object Object],[object Object]
C.  Understand Asset Classes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Asset Classes  (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cash and Cash Equivalents ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cash and Cash Equivalents  (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cash and Cash Equivalents  (continued) ,[object Object],[object Object],[object Object],[object Object]
Fixed Income (or Bonds) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Fixed-income  (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Fixed-income  (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Fixed-income  (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Fixed-income  (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Fixed-income  (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Equities (or Stocks) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Equities   (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Equities   (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Equities   (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Equities   (continued) ,[object Object],[object Object],[object Object],[object Object]
Equities   (continued) ,[object Object],[object Object],[object Object],[object Object]
Equities   (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Equities   (continued) ,[object Object],[object Object],[object Object],[object Object]
Equities   (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Equities   (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Equities   (continued)   ,[object Object],[object Object],[object Object],[object Object],[object Object]
Review of Objectives ,[object Object],[object Object],[object Object],[object Object]
Case Study #1 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Case Study #1 Answer ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Case Study #2 ,[object Object],[object Object],[object Object],[object Object]
Case Study #2 Answer ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Case Study #3 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Case Study #3 Answer ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Case Study #4 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Case Study #4 Answer ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Case Study #5 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Case Study #5 Answer ,[object Object],[object Object],[object Object],[object Object],[object Object]
Case Study #6 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Case Study #6 Answer ,[object Object],[object Object],[object Object],[object Object],[object Object]
Case Study #6 Answer ,[object Object],[object Object],[object Object],[object Object],[object Object]

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Before Investing

  • 1. Personal Finance: Another Perspective Investments 1: Before you Invest
  • 2. Objectives A. Know what to do before you invest B. Understand the ten principles of successful investing C. Understand the major asset classes D. Review the risk and return history of the major asset classes
  • 3.
  • 4.
  • 5.
  • 6. Before You Invest: The Hourglass Top 4. Have you written down your personal goals, do you live on a budget, and do you have a well-written investment plan? If you can answer these affirmatively, you are ready to invest ! 3. Are you out of high-interest rate credit card and consumer debt? 2. Do you have adequate health and life insurance? 1. Are your priorities in order and are you “square” with the Lord?
  • 7.
  • 8.
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  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29. Returns: Asset Class Returns
  • 32. Returns: S&P500 5 Year Returns
  • 33. Returns: S&P500 10 Year Returns
  • 34. Equity Asset Class Returns and Risk (through 2008)
  • 35.
  • 36.
  • 37.
  • 38.
  • 39.
  • 40.
  • 41.
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