Understanding Investments Discussion Questions & Case Studies 03-06-2008
Type the discussion questions on page 21 of your Financial Peace Workbook and answer them in a complete sentence. Also, type the Case Studies on page 21 of your Financial Peace Workbook and answer them in a complete sentence.
18 comments:
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1.Which type of investment would you be most comfortable with? Why? My money goes in my savings account.
2.Do you own any investments now? If so, what type and how long have you had them? I don't own any.
3.Does investing in the stock market worry you? Why or why not? No. Because I've never done it.
4.If most of the mutual funds crashed, where would your money be safe? In the bank.
5.Why do you want to look at a LONG term track record with a mutual fund? Because it's best if you do.
1. John is considerig borrowing $20,000 against his home to invest in a series of Aggressive Growth Stock Mutual Funds. The track record for these funds over the last 3 years has been an average growth of 21.2%. The interest rate he will have to pay is only 7.5% so he figures this is a no-brainer. The fact is he is 63 years old and is also figuring into his thoughts because he figures he has,'t got very long until rertirement. What would you tell John in this situation?
-I would say only take out about 10,000 and invest it in the aggresive growth.
2.Stephanie has just turned 21 and wants to invest 15% of her income into mutual funds. She earns an annua; salary of $23,500. She has $22,000 in debt with her car and hass no savings. What steps would you tell stephanit to take?
-Invest 10% until she gets out of debt with the car then move up to 15 or 20%.
1.John is considering borrowing $20,000 against his home to invest in a series of Aggressive Growth Stock Mutdual Funds. The track record for these funds over the last 3 years has been an average growth of 21.2%. Theinterst rate he will have to pay is only 7.5% so he figures this is a no-brainer. The fact that he is 63 years old is also figuring into his thoughts beacuse he figures he hasn't got long until retirement. What would you tell John in this situation? I would tell him to do it.
2.Staphanie has just turned 21 and wants to invest 15% of her income into mutual funds. She earns an annual salary of $23,500. She has $22,000 in debt with her car and has no savings. What steps would you tell Stephanie to take? Pay the debt off first.
1. Which type of investment would you be most comfortable with? Why? - I like to invest in American Eagle, because I love that store.
2. Do you own any investments now? If so, what type and how long have you had them? - I do not have any investments at this time, but I plan to in the future.
3. Does investing in the stock market worry you? Why or why not? - It would worry me, because if people might not do the right thing and it will mess everything up and you would loose money.
4. If most of the mutual funds crashed, where would your money be safe? - If the mutual funds crashed, my money would be safe in the bank.
5. Why do you want to look at a LONG term track record with a mutual fund? - If you look at a long term track record, the more money you would make.
Case Studies
1. John is considering borrowing $20,000 against his home to invest in a series of Aggressive Growth Stock Market Funds. The track record for these funds over the last 3 years has been an average growth of 21.2%. The interest rate he will have to pay is only 7.5% so he figuring this is a no-brainer. The fact that he is 63 years old is also figuring into his thoughts because he figures he hasn’t got very long until retirement. What would you tell John in this situation?
-I would tell him not to invest in it if he is wanting to retire soon because that would be a waste of money if he isn’t getting any back from it.
2. Stephanie has just turned 21 and wants to invest 15% of her income into mutual funds. She earns an annual salary of $23,500. She has $22,000 in debt with her car and has no savings. What steps would you tell Stephanie to take?
-I would tell her to wait and pay off her debt first, and then start to invest her income into mutual funds.
1.Which type of investment would you be most comfortable with? I would want to do a mutual fund because they pool their money to invest. 2.Do you own any investments now? Id so, what type and how long have you had them? No, I do not own any investments. 3.Does investing in the stock market worry you? Why or why not? It doesn't worry me because I think having a stock is good. 4.If most of the mutual funds crashed, where would your money be safe? I guess my money would be safe in a bank. 5. Why do you want to look back on a long term track record with a mutual fund? because you could have a long term investment.
1) Which type of investment would you be most comfortable with? Why? -I would be more confortable with an investment that I knew I had insurance on, because that way if it doesn't go as planed, I will have something to fall back on.
2)Do you own any investments now? If so, what type and how long have you had them? -Right now, I do not have any major investments.
3) Does investing in the stock market worry you? Why or why not? -It doesn't worry me, because I don't fully understand it.
4) If most of the mutual funds crashed, where would your money be safe? -I would hope it would be safe in the bank.
5) Why do you want to look at a LONG term track record with a mutual fund? -Because long term things take time, and so do mutual funds.
1) John is considering borrowing $20,000 against his home to invest in a series of Aggressive Growth Stock Mutual Funds. The track record for these funds over the last 3 years has been an average growth of 21.2%. The interest rate he will have to pay is only 7.5% so he figures this is a no-brainer. The fact that he is 63 years old is also figuring into his thoughts because he figures he hasn't got very long until retirement. What would you tell John in this situation? - I would tell him to make sure this would work before he did anything drastic.
2) Shephanie has just turned 21 and wants to invest 15% of her income into mutual funds. She earns an annual salary of $23,500. SHe has $22,000 in debt with her car and has no savings. What steps would you tell her to take? - I would say get out of car payment debt. And then invest your money.
DISCUSSION 1.Which type of investment would you be most comfortable with? Why? A CD because it has the least amount of risk. 2. Do you own any investments now? If so, what type and how long have you had them? I have had a CD for 2 years now and Bonds from the time I was 1-14 on every birthday. 3. Does investing in the stock market worry you? Why or why not? It does not worry me that much because over a ten year period a 100% of the people have made money 4. If most of the mutual funds crashed, where would your money be safe? It would be safe in a CD. 5. Why do you want to look at a LONG term track record with a mutual fund? Because the stock market has its ups and downs.
CASE STUDIES 1. John is considering borrowing $20,000 against his home to invest in a series of Aggressive Growth Mutual Funds. The track record for these funds over the last 3 years has been an average growth of 21.2%. The interest he will have to pay is only 7.5%so he figures this is a no-brainer. The fact that he is 63 years old is also figuring into his thoughts because he figures he hasn’t got very long until retirement. What would you tell John in this situation? I would tell him not to because as Ramsey has said never invest borrowed money. 2. Stephanie has just turned 21 and wants to invest 15 % of her income into mutual funds. She earns an annual salary of $23,500. She has $22,000 in debt with her car and has no savings. What steps would you tell Stephanie to take? Pay off her debt first then begin investing after she gets it paid off.
Discussion 1. Which type of investment would you be most comfortable with? Why? A cd. you dont have to worry about losing as much money.
2. Do you won any investments now? if so, what type and how long have you had them? I dont have any. But i plan on starting a saveings account for college this summer.
3. Does investing in the stock market worry you? Why or Why not? Not really, because if your value goes down just for a little while and the value will increase.
4. If most of the mutal funds crashed, where would you mony be safe. well if i had money then i could answer this more truthfully, but i would prolly keep it in a cd or a bond.
5. Why do you want to look at a LONG term track record with a mutual fund? Cause the longer you leave it alone the more intrest builds and the more money you will get.
Case Studies 1. John is considering borrowing $20,000 against his home to invest in a series of Aggressive Growth Stock Market Mutual Funds. The track record for these funds ober the last 3 years has been an average frowth of 21.2%. The interest rate he will have habbe to pay only 7.5% so he figures this is a no-brainer. The fact that he is 63 uears lod is also figuring into his thoughts because he figures he hasn't got very long until retirement. What would you tell John in this situation?
I would tell him to invest in a much smaller market that he wouldn't have to take out a huge loan on.
2. Stephanie has just turned 21 abd wants to invest 15% of her income into mutual funds. She earns an annual salary of $23,500. She has $22,000 in debt with her carand has no savings. What steps would you tell Stephanie to take?
I would tell her to get out of debt and start an emergency fund. And then after she has a emergency fund saved then start investing.
1. Which type of investment would you be most comfortable with? Why? I would want a Mutual Fund. I dunno, it takes awhile, and no real worries come with it. 2. Do you own any investments now? If so, what type and how long have you had them? No, I don’t. But I may get one some day. 3. Does investing in the stock market worry you? Why or why not? Yes, I am a worrywart so I worry about everything. 4. If most of the mutual funds crashed, where would your money be safe? In an annuity, I would think. 5. Why do you want to look at a LONG term track record with a mutual fund?
Because, you have to wait awhile for the money to grow. If it has a bad long term record then you won’t make any money.
1. John is considering borrowing$20,000 against his home to invest in a series of Aggressive Growth Stock Mutual Funds. The track record for these funds over the last 3 years has been an average growth of 21.2%. The interest rate he will have to pay is only 7.5% so he figures this is a no-brainer. The fact that he is 63 years old is also figuring into his thoughts because he figures he hasn’t got very long until retirement. What would you tall John in this situation? I would tell him he’s too old for a Mutual Fund. I would disagree, because he might lose his home.
2. Stephanie has just turned 21 and wants to invest 15% of her income into mutual funds. She earns an annual salary of $23,500. She has $22,000 in debt with her car and has no savings. What steps would you tell Stephanie to take?
First to start a savings account. Then I would suggest she pay off her car debt. She could divide her income up and then pay the others off equally.
1. Which type of investment would you be most comfortable with? Why? -Probably with Mutual Funds. Because investors pool their money to invest.
2. Do you own any investments now? If so, what type and how long have you had them? -I don’t thank I have an investment.
3. Does investing in the stock market worry you? Why or why not? -I don’t know, probably.
4. If most of the mutual funds crashed, where would your money be safe? -In an annuity.
5. Why do you want a look at a LONG term track record with a mutual fund? -Because you want it to all grow, or you wont make any money.
1. John is considering borrowing $20,000 against his home to invest in a series of Aggressive Growth Stock Mutual Funds. The track record for these funds over the last 3 years has been an average of 21.2%. The interest rate he will have to pay is only 7.5% so he figures this is a no-brainer. The fact that he is 63 years old is also figuring into his thoughts because he figures he hasn’t got a very long until retirement. What would you tell John in this situation? -Tell him not to invest with borrowed money.
2. Stephanie has just turned 21 and wants to invest 15% of her income into mutual funds. She earns an annual salary of $23,500. She has $22,000 in debt with her car and has no savings. What steps would you tell Stephanie to take? -At least try to pay off the debts first, and use the remaining with what she needs.
1. Which type of investment would you be most comfortable with? why? a cd 2. do you own any investments now? if so, what type and how long have you had them? no in do not own any investments 3. Does investing in the stock market worry you? why or why not? no it not worry me it will go up. 4. if most of the mutual funds crashed, where would you money be safe? people would not still it 5. why do you want to look at a LONG term track record with a mutual fund? long it is the big it get 1. John is considering borrowing$20,000 against his home to ivewst in a series of Aggressive Growth Stock Mutual Funds. The track record for these fundw over the last 3year has been an average growth of 21, 2% The interest rate he will have to pay is only 705% so he figeres this is a no-brtainer. The fact that he3 is 63 years old is also figuring into heis thoughts because he figure he hasn't got very long untill reirement. What would you tel john in this situation? you should have a lot of cash on havd before investing i theis 2. Stephaniw has just turned 21 and wants to invest 15% fo her income into mutual funds. SHe earns an annual salart of $22,000 in debt with her car and has no savings what steps would you tell stephanis to take? AQ saving account with ana insurance company
1. Which type of investment would you be most comfortable worth? Why? A CD, because it wouldn’t be much of a risk I would think.
2. Do you own any investments now? If so, what type and how long have you had them? I do not own any kind of investments as of now but I do plan to in the future.
3. Does investing in the stock market worry you? Why or why not? Yes, kind of because it is so hard to predict what is going to happen.
4. If most of the mutual funds crashed, where would your money be safe? In my own bank that I had my own money in then it would be safe.
5. Why do you want to look at a long term track record with a mutual fund? So you will be safe and secure for the future and whatever it troughs at you.
1. Which type of investment would you be most comfortable with? Why? 2. Do you own any investments now? If so, what type and how long have you had them? 3. Does investing in the stock market worry you? Why or why not? 4. If most of the mutual funds crashed, where would your money be safe? 5. Why do you want to look at a LONG term track record with a mutual fund?
A1) I would be more comfortable with a mutual fund because I know my money would be safe and there if I needed it.
A2) I don’t own any investments right now unless you call my money jar an investment.
A3) It would If I did because just in case the stock market crashed.
A4) I would just save my money with me until I could find a new investment.
A5) So I don’t have to settle in to a new investment every so often.
1. Which type of investment would you be most comfortable worth? Why? A CD, because it's the least amount of risk I would think.
2. Do you own any investments now? If so, what type and how long have you had them? I do not own any kind of investments as of now but I do plan to in the future.
3. Does investing in the stock market worry you? Why or why not? Yes, kind of because it is so hard to predict what is going to happen.
4. If most of the mutual funds crashed, where would your money be safe? In a bank i would think.
5. Why do you want to look at a long term track record with a mutual fund? So you will be safe and secure for the future.
1. Which type of investment would you be most comfortable with? Why? Probably the rental real estate, because you have to have money to do that. If I had money I would be little bit more comfortable. 2. Do you own any investment now? If so, what type and how long have you had them? I don’t own any investment 3. Does investing in the stock market worry you? Why or why not? Yes a little because it is known to crash. 4. If most of the mutual funds crashed, where would your money be safe? In your own wallet, instead of in mutual funds. 5. Why do you want to look at a LONG term track record with a mutual fund? Because when more and more people invest their money in stock the price goes up.
John is considering borrowing $20,000 against his home to invest in a series of Aggressive Growth Stock Mutual Funds. The track record for these funds over the last 3 years has been an average growth of 21.2%. The interest rate he will have to pay is only 7.5% so he figures this is a no-brainer. The fact that he is 63 years old is also figuring into his thoughts because he figures he hasn’t got very long until retirement. What would you tell John in this situation? It’s never too late to start. Do what you think is best for you and your family.
Stephanie has just turned 21 and wants to invest 15% of her income into mutual funds. She earns an annual salary of $23,500. She has $22,000 in debt with her car and has no savings. What steps would you tell Stephanie to take? First she needs to get out of debt and get back on track and then she will be able to start her investments.
1. John is considering borrowing $20,000 against his home to invest in a series of Aggressive Growth Stock Mutual Funds. The track record for these funds over the last 3 years has been an average growth of 21.2%. The interest rate he will have to pay is only 7.5% so he figures this is a no-brainer. The fact that he is 63 years old is also figuring into his thoughts because he figures he hasn't got long until retirement. What would you tell John in this situation? - I would tell John that he needs to just save the money and just put it into stock or something else.
2. Stephanie has just turned 21 and wants to invest 15% of her income into mutual funds. She earns an annual salary of $23,500. She has $22,000 in debt with her car and has no savings. What steps would you tell Stephanie to take? - I would tell Stephanie to pay off her car debt before even thinking of investing in anything.
Discussion:
1) Which type of investment would you be most comfortable with? Why? -I would be more comfortable with an investment that I knew I had insurance on, because that way if it doesn't go as planned, I will have something to fall back on.
2) Do you own any investments now? If so, what type and how long have you had them? -Right now, I do not have any major investments.
3) Does investing in the stock market worry you? Why or why not? -It does worry me a little bit because I don't understand it.
4) If most of the mutual funds crashed, where would your money be safe? -In the bank I would hope.
5) Why do you want to look at a LONG term track record with a mutual fund? -Because long term things take time, and so do mutual funds.
1. Which type of investment would you be most comfortable with? Why? - I would be more comfortable with a Single Stock investment because it allows me to keep track by how well the company is doing.
2. Do you own any investments now? If so, what type and how long have you had them? - I do not have any now, but I will in the future.
3. Does investing in the stock market worry you? Why or why not? - It worries me, but it’s a risk with heavy benefits. The only problem is flux’s in the trades or loss of money.
4. If most of the mutual funds crashed, where would your money be safe? - My money would be safe in the bank.
5. Why do you want to look at a LONG term track record with a mutual fund? - You would make more money.
Case Studies
1. John is considering borrowing $20,000 against his home to invest in a series of Aggressive Growth Stock Market Funds. The track record for these funds over the last 3 years has been an average growth of 21.2%. The interest rate he will have to pay is only 7.5% so he figuring this is a no-brainer. The fact that he is 63 years old is also figuring into his thoughts because he figures he hasn’t got very long until retirement. What would you tell John in this situation?
- I would tell John to take a chance, but the safest thing to do is to not do it.
2. Stephanie has just turned 21 and wants to invest 15% of her income into mutual funds. She earns an annual salary of $23,500. She has $22,000 in debt with her car and has no savings. What steps would you tell Stephanie to take?
- Clear her debt and save some money, once she is on her feet – then, she has the safest way to invest.
18 comments:
1.Which type of investment would you be most comfortable with? Why?
My money goes in my savings account.
2.Do you own any investments now? If so, what type and how long have you had them?
I don't own any.
3.Does investing in the stock market worry you? Why or why not?
No. Because I've never done it.
4.If most of the mutual funds crashed, where would your money be safe?
In the bank.
5.Why do you want to look at a LONG term track record with a mutual fund?
Because it's best if you do.
1. John is considerig borrowing $20,000 against his home to invest in a series of Aggressive Growth Stock Mutual Funds. The track record for these funds over the last 3 years has been an average growth of 21.2%. The interest rate he will have to pay is only 7.5% so he figures this is a no-brainer. The fact is he is 63 years old and is also figuring into his thoughts because he figures he has,'t got very long until rertirement. What would you tell John in this situation?
-I would say only take out about 10,000 and invest it in the aggresive growth.
2.Stephanie has just turned 21 and wants to invest 15% of her income into mutual funds. She earns an annua; salary of $23,500. She has $22,000 in debt with her car and hass no savings. What steps would you tell stephanit to take?
-Invest 10% until she gets out of debt with the car then move up to 15 or 20%.
1.John is considering borrowing $20,000 against his home to invest in a series of Aggressive Growth Stock Mutdual Funds. The track record for these funds over the last 3 years has been an average growth of 21.2%. Theinterst rate he will have to pay is only 7.5% so he figures this is a no-brainer. The fact that he is 63 years old is also figuring into his thoughts beacuse he figures he hasn't got long until retirement. What would you tell John in this situation?
I would tell him to do it.
2.Staphanie has just turned 21 and wants to invest 15% of her income into mutual funds. She earns an annual salary of $23,500. She has $22,000 in debt with her car and has no savings. What steps would you tell Stephanie to take?
Pay the debt off first.
Discussion
1. Which type of investment would you be most comfortable with? Why?
- I like to invest in American Eagle, because I love that store.
2. Do you own any investments now? If so, what type and how long have you had them?
- I do not have any investments at this time, but I plan to in the future.
3. Does investing in the stock market worry you? Why or why not?
- It would worry me, because if people might not do the right thing and it will mess everything up and you would loose money.
4. If most of the mutual funds crashed, where would your money be safe?
- If the mutual funds crashed, my money would be safe in the bank.
5. Why do you want to look at a LONG term track record with a mutual fund?
- If you look at a long term track record, the more money you would make.
Case Studies
1. John is considering borrowing $20,000 against his home to invest in a series of Aggressive Growth Stock Market Funds. The track record for these funds over the last 3 years has been an average growth of 21.2%. The interest rate he will have to pay is only 7.5% so he figuring this is a no-brainer. The fact that he is 63 years old is also figuring into his thoughts because he figures he hasn’t got very long until retirement. What would you tell John in this situation?
-I would tell him not to invest in it if he is wanting to retire soon because that would be a waste of money if he isn’t getting any back from it.
2. Stephanie has just turned 21 and wants to invest 15% of her income into mutual funds. She earns an annual salary of $23,500. She has $22,000 in debt with her car and has no savings. What steps would you tell Stephanie to take?
-I would tell her to wait and pay off her debt first, and then start to invest her income into mutual funds.
1.Which type of investment would you be most comfortable with? I would want to do a mutual fund because they pool their money to invest.
2.Do you own any investments now? Id so, what type and how long have you had them? No, I do not own any investments.
3.Does investing in the stock market worry you? Why or why not?
It doesn't worry me because I think having a stock is good.
4.If most of the mutual funds crashed, where would your money be safe? I guess my money would be safe in a bank.
5. Why do you want to look back on a long term track record with a mutual fund? because you could have a long term investment.
1) Which type of investment would you be most comfortable with? Why?
-I would be more confortable with an investment that I knew I had insurance on, because that way if it doesn't go as planed, I will have something to fall back on.
2)Do you own any investments now? If so, what type and how long have you had them?
-Right now, I do not have any major investments.
3) Does investing in the stock market worry you? Why or why not?
-It doesn't worry me, because I don't fully understand it.
4) If most of the mutual funds crashed, where would your money be safe?
-I would hope it would be safe in the bank.
5) Why do you want to look at a LONG term track record with a mutual fund?
-Because long term things take time, and so do mutual funds.
1) John is considering borrowing $20,000 against his home to invest in a series of Aggressive Growth Stock Mutual Funds. The track record for these funds over the last 3 years has been an average growth of 21.2%. The interest rate he will have to pay is only 7.5% so he figures this is a no-brainer. The fact that he is 63 years old is also figuring into his thoughts because he figures he hasn't got very long until retirement. What would you tell John in this situation?
- I would tell him to make sure this would work before he did anything drastic.
2) Shephanie has just turned 21 and wants to invest 15% of her income into mutual funds. She earns an annual salary of $23,500. SHe has $22,000 in debt with her car and has no savings. What steps would you tell her to take?
- I would say get out of car payment debt. And then invest your money.
DISCUSSION
1.Which type of investment would you be most comfortable with? Why?
A CD because it has the least amount of risk.
2. Do you own any investments now? If so, what type and how long have you had them?
I have had a CD for 2 years now and Bonds from the time I was 1-14 on every birthday.
3. Does investing in the stock market worry you? Why or why not?
It does not worry me that much because over a ten year period a 100% of the people have made money
4. If most of the mutual funds crashed, where would your money be safe?
It would be safe in a CD.
5. Why do you want to look at a LONG term track record with a mutual fund?
Because the stock market has its ups and downs.
CASE STUDIES
1. John is considering borrowing $20,000 against his home to invest in a series of Aggressive Growth Mutual Funds. The track record for these funds over the last 3 years has been an average growth of 21.2%. The interest he will have to pay is only 7.5%so he figures this is a no-brainer. The fact that he is 63 years old is also figuring into his thoughts because he figures he hasn’t got very long until retirement. What would you tell John in this situation?
I would tell him not to because as Ramsey has said never invest borrowed money.
2. Stephanie has just turned 21 and wants to invest 15 % of her income into mutual funds. She earns an annual salary of $23,500. She has $22,000 in debt with her car and has no savings. What steps would you tell Stephanie to take?
Pay off her debt first then begin investing after she gets it paid off.
Discussion
1. Which type of investment would you be most comfortable with? Why?
A cd. you dont have to worry about losing as much money.
2. Do you won any investments now? if so, what type and how long have you had them?
I dont have any. But i plan on starting a saveings account for college this summer.
3. Does investing in the stock market worry you? Why or Why not?
Not really, because if your value goes down just for a little while and the value will increase.
4. If most of the mutal funds crashed, where would you mony be safe.
well if i had money then i could answer this more truthfully, but i would prolly keep it in a cd or a bond.
5. Why do you want to look at a LONG term track record with a mutual fund?
Cause the longer you leave it alone the more intrest builds and the more money you will get.
Case Studies
1. John is considering borrowing $20,000 against his home to invest in a series of Aggressive Growth Stock Market Mutual Funds. The track record for these funds ober the last 3 years has been an average frowth of 21.2%. The interest rate he will have habbe to pay only 7.5% so he figures this is a no-brainer. The fact that he is 63 uears lod is also figuring into his thoughts because he figures he hasn't got very long until retirement. What would you tell John in this situation?
I would tell him to invest in a much smaller market that he wouldn't have to take out a huge loan on.
2. Stephanie has just turned 21 abd wants to invest 15% of her income into mutual funds. She earns an annual salary of $23,500. She has $22,000 in debt with her carand has no savings. What steps would you tell Stephanie to take?
I would tell her to get out of debt and start an emergency fund. And then after she has a emergency fund saved then start investing.
1. Which type of investment would you be most comfortable with? Why?
I would want a Mutual Fund. I dunno, it takes awhile, and no real worries come with it.
2. Do you own any investments now? If so, what type and how long have you had them?
No, I don’t. But I may get one some day.
3. Does investing in the stock market worry you? Why or why not?
Yes, I am a worrywart so I worry about everything.
4. If most of the mutual funds crashed, where would your money be safe?
In an annuity, I would think.
5. Why do you want to look at a LONG term track record with a mutual fund?
Because, you have to wait awhile for the money to grow. If it has a bad long term record then you won’t make any money.
1. John is considering borrowing$20,000 against his home to invest in a series of Aggressive Growth Stock Mutual Funds. The track record for these funds over the last 3 years has been an average growth of 21.2%. The interest rate he will have to pay is only 7.5% so he figures this is a no-brainer. The fact that he is 63 years old is also figuring into his thoughts because he figures he hasn’t got very long until retirement. What would you tall John in this situation?
I would tell him he’s too old for a Mutual Fund. I would disagree, because he might lose his home.
2. Stephanie has just turned 21 and wants to invest 15% of her income into mutual funds. She earns an annual salary of $23,500. She has $22,000 in debt with her car and has no savings. What steps would you tell Stephanie to take?
First to start a savings account. Then I would suggest she pay off her car debt. She could divide her income up and then pay the others off equally.
1. Which type of investment would you be most comfortable with? Why?
-Probably with Mutual Funds. Because investors pool their money to invest.
2. Do you own any investments now? If so, what type and how long have you had them?
-I don’t thank I have an investment.
3. Does investing in the stock market worry you? Why or why not?
-I don’t know, probably.
4. If most of the mutual funds crashed, where would your money be safe?
-In an annuity.
5. Why do you want a look at a LONG term track record with a mutual fund?
-Because you want it to all grow, or you wont make any money.
1. John is considering borrowing $20,000 against his home to invest in a series of Aggressive Growth Stock Mutual Funds. The track record for these funds over the last 3 years has been an average of 21.2%. The interest rate he will have to pay is only 7.5% so he figures this is a no-brainer. The fact that he is 63 years old is also figuring into his thoughts because he figures he hasn’t got a very long until retirement. What would you tell John in this situation?
-Tell him not to invest with borrowed money.
2. Stephanie has just turned 21 and wants to invest 15% of her income into mutual funds. She earns an annual salary of $23,500. She has $22,000 in debt with her car and has no savings. What steps would you tell Stephanie to take?
-At least try to pay off the debts first, and use the remaining with what she needs.
1. Which type of investment would you be most comfortable with? why? a cd 2. do you own any investments now? if so, what type and how long have you had them? no in do not own any investments 3. Does investing in the stock market worry you? why or why not? no it not worry me it will go up.
4. if most of the mutual funds crashed, where would you money be safe? people would not still it 5. why do you want to look at a LONG term track record with a mutual fund? long it is the big it get 1. John is considering borrowing$20,000 against his home to ivewst in a series of Aggressive Growth Stock Mutual Funds. The track record for these fundw over the last 3year has been an average growth of 21, 2% The interest rate he will have to pay is only 705% so he figeres this is a no-brtainer. The fact that he3 is 63 years old is also figuring into heis thoughts because he figure he hasn't got very long untill reirement. What would you tel john in this situation? you should have a lot of cash on havd before investing i theis
2. Stephaniw has just turned 21 and wants to invest 15% fo her income into mutual funds. SHe earns an annual salart of $22,000 in debt with her car and has no savings what steps would you tell stephanis to take? AQ saving account with ana insurance company
Discussion
1. Which type of investment would you be most comfortable worth? Why? A CD, because it wouldn’t be much of a risk I would think.
2. Do you own any investments now? If so, what type and how long have you had them?
I do not own any kind of investments as of now but I do plan to in the future.
3. Does investing in the stock market worry you? Why or why not?
Yes, kind of because it is so hard to predict what is going to happen.
4. If most of the mutual funds crashed, where would your money be safe?
In my own bank that I had my own money in then it would be safe.
5. Why do you want to look at a long term track record with a mutual fund?
So you will be safe and secure for the future and whatever it troughs at you.
1. Which type of investment would you be most comfortable with? Why?
2. Do you own any investments now? If so, what type and how long have you had them?
3. Does investing in the stock market worry you? Why or why not?
4. If most of the mutual funds crashed, where would your money be safe?
5. Why do you want to look at a LONG term track record with a mutual fund?
A1) I would be more comfortable with a mutual fund because I know my money would be safe and there if I needed it.
A2) I don’t own any investments right now unless you call my money jar an investment.
A3) It would If I did because just in case the stock market crashed.
A4) I would just save my money with me until I could find a new investment.
A5) So I don’t have to settle in to a new investment every so often.
Discussion
1. Which type of investment would you be most comfortable worth? Why? A CD, because it's the least amount of risk I would think.
2. Do you own any investments now? If so, what type and how long have you had them?
I do not own any kind of investments as of now but I do plan to in the future.
3. Does investing in the stock market worry you? Why or why not?
Yes, kind of because it is so hard to predict what is going to happen.
4. If most of the mutual funds crashed, where would your money be safe?
In a bank i would think.
5. Why do you want to look at a long term track record with a mutual fund?
So you will be safe and secure for the future.
1. Which type of investment would you be most comfortable with? Why? Probably the rental real estate, because you have to have money to do that. If I had money I would be little bit more comfortable.
2. Do you own any investment now? If so, what type and how long have you had them? I don’t own any investment
3. Does investing in the stock market worry you? Why or why not? Yes a little because it is known to crash.
4. If most of the mutual funds crashed, where would your money be safe? In your own wallet, instead of in mutual funds.
5. Why do you want to look at a LONG term track record with a mutual fund? Because when more and more people invest their money in stock the price goes up.
John is considering borrowing $20,000 against his home to invest in a series of Aggressive Growth Stock Mutual Funds. The track record for these funds over the last 3 years has been an average growth of 21.2%. The interest rate he will have to pay is only 7.5% so he figures this is a no-brainer. The fact that he is 63 years old is also figuring into his thoughts because he figures he hasn’t got very long until retirement. What would you tell John in this situation?
It’s never too late to start. Do what you think is best for you and your family.
Stephanie has just turned 21 and wants to invest 15% of her income into mutual funds. She earns an annual salary of $23,500. She has $22,000 in debt with her car and has no savings. What steps would you tell Stephanie to take?
First she needs to get out of debt and get back on track and then she will be able to start her investments.
Case Studies:
1. John is considering borrowing $20,000 against his home to invest in a series of Aggressive Growth Stock Mutual Funds. The track record for these funds over the last 3 years has been an average growth of 21.2%. The interest rate he will have to pay is only 7.5% so he figures this is a no-brainer. The fact that he is 63 years old is also figuring into his thoughts because he figures he hasn't got long until retirement. What would you tell John in this situation?
- I would tell John that he needs to just save the money and just put it into stock or something else.
2. Stephanie has just turned 21 and wants to invest 15% of her income into mutual funds. She earns an annual salary of $23,500. She has $22,000 in debt with her car and has no savings. What steps would you tell Stephanie to take?
- I would tell Stephanie to pay off her car debt before even thinking of investing in anything.
Discussion:
1) Which type of investment would you be most comfortable with? Why?
-I would be more comfortable with an investment that I knew I had insurance on, because that way if it doesn't go as planned, I will have something to fall back on.
2) Do you own any investments now? If so, what type and how long have you had them?
-Right now, I do not have any major investments.
3) Does investing in the stock market worry you? Why or why not?
-It does worry me a little bit because I don't understand it.
4) If most of the mutual funds crashed, where would your money be safe?
-In the bank I would hope.
5) Why do you want to look at a LONG term track record with a mutual fund?
-Because long term things take time, and so do mutual funds.
Discussion
1. Which type of investment would you be most comfortable with? Why?
- I would be more comfortable with a Single Stock investment because it allows me to keep track by how well the company is doing.
2. Do you own any investments now? If so, what type and how long have you had them?
- I do not have any now, but I will in the future.
3. Does investing in the stock market worry you? Why or why not?
- It worries me, but it’s a risk with heavy benefits. The only problem is flux’s in the trades or loss of money.
4. If most of the mutual funds crashed, where would your money be safe?
- My money would be safe in the bank.
5. Why do you want to look at a LONG term track record with a mutual fund?
- You would make more money.
Case Studies
1. John is considering borrowing $20,000 against his home to invest in a series of Aggressive Growth Stock Market Funds. The track record for these funds over the last 3 years has been an average growth of 21.2%. The interest rate he will have to pay is only 7.5% so he figuring this is a no-brainer. The fact that he is 63 years old is also figuring into his thoughts because he figures he hasn’t got very long until retirement. What would you tell John in this situation?
- I would tell John to take a chance, but the safest thing to do is to not do it.
2. Stephanie has just turned 21 and wants to invest 15% of her income into mutual funds. She earns an annual salary of $23,500. She has $22,000 in debt with her car and has no savings. What steps would you tell Stephanie to take?
- Clear her debt and save some money, once she is on her feet – then, she has the safest way to invest.
1.Which type of investment would you be most comfortable with? Why?
-I have my own savings account so that is where mine goes.
2. Do you own any investments now? If so, what type and how long have you had them?
-I do not own any.
3.Does investing in the stock market worry you? Why or Why not?
-Yes because people could do something wrong and they could loose money.
4. If most of the mutual funds crashed, where would your money be safe?
-It would be safe in the bank.
5.Why do you want to look at a LONG term track record with a mutual fund?
-You would make more money if you looked at that.
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