Step 1) Spin the Wheel to See How Much Money You Have to Invest

2.04 Investing assignment

Step 1) Spin the wheel to see how much money you have to invest.

What were your results? ______

Step 2) Fill out investing chart. These websites can help you msn.money, Yahoo Finance, Bankrate, investopedia, Market Watch Getting started.

Type of Investment / Description—explain what it is and how it works. / Level of Risk and Potential Return—explain. (How likely are you to lose your money vs make money) / Real-life example of this investment (name or company) / Minimum investment amount or time? Easy to start or stop investment? Discuss.
CD
IRA / Individual Retirement Account (IRA)—a portion of a person's income is set aside to be withdrawn after retirement, growing interest in the meantime through investment in other securities. Employers might contribute to the account as a benefit to employees.
MMA
Stocks / Usually you can't just buy one stock—must invest a minimum dollar amount. For a large company like McDonald's, the high start-up cost deters personal investors ($50,000 in 2012).
Bonds / 30-Year Treasury Bond—U.S. Department of the Treasury
Mutual Funds
Futures / High (Aggressive)—Have a potentially large return relative to other investments but also are considered the riskiest.
Traditional Bank Account

Step 3) Essay

Choose three investment options from the chart for your money. Describe your investment plan in a detailed paragraph. Be sure to include responses to the following questions:

Explain how you obtained the money for investment. (from the spinner activity)
Why did you choose these three options?
How do your choices reflect your tolerance for risk?
How do you plan to divide your money between the three investment options you chose? Be sure to include the following terms in your explanation: diversification, risk, rate of return, interest rate.

Write our paragraph below…

Save your file as “YOURNAME204” and then upload to 2.04