爱荷华州立大学退休信息专家系统 Retirement Information Specialist for Iowa State University.ppt

Ann Doty Retirement Information Specialist for Iowa State University Iowa Native. Graduate of ISU and University of Iowa. Masters Degree in Social Work. 9 years experience as a Therapist. 4 years experience as a Financial Advisor. 4 cats, 2 - 50 gal. Aquariums 1 husband Live on 2 acres SW of Ames. There are really only 2 kinds of investments: Lending money. Because you lend money at only a little bit above the rate of inflation, you don’t make much money. Using money to buy ownership in land or businesses/companies. Only ownership allows you to growth your money. Retirement Investments Start with the basics What is a bond? What is a stock? Bonds are making loans to a company. You loan your money. You get some interest paid to you. You get back the money you loaned out sometime in the future. The Risk is very low. The Money you make is very little. This is how CD’s work and you are the Bank. Stocks are buying parts of a company. You become a silent part owner in a company. If the company makes money (a profit) and you sell it then, your share is worth more. If the company loses money (a loss) and you sell it then, your share is worth less. The Risk is higher. You have the opportunity to make more money. Seems like brain surgery? Try a couple different examples… Iowa Style Bonds (lending) are like owning Dairy Cows. You always own the cows. You make your money selling the milk. The more milk (interest) the cow provides, the more money you make. Stocks (Ownership) are like owning Cattle. What matters is how much you pay for them and How much you can sell them for. You might lose your money, but if the market is right you can make more than you can selling milk. Try another example… Bonds (Loans) are like renting a house. The risk is low, but you don’t have much to show for it when you leave. If your time frame is short, it’s the only smart thing to do. Stocks (Ownership) are like buying your home. You tak