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
CD
IRA
MMA
Stocks
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.
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withdrawn after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.
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
Mutual Funds
Futures
30-Year Treasury
Bond—U.S.
Department of
the Treasury
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