www.henryford.

com
 Agenda for this morning
-Discussion on money, inflation, and
different types of investments (~30 mins)

-Stocks & crypto demo (~20 mins)

-Q and A (~10 mins)

What is money?
To buy food
Rental fee
Tuition fee
Hospitalization
Electric bill
 money, a commodity accepted by general
consent as a medium of economic exchange. It
is the medium in which prices and values are
expressed; as currency, it circulates
anonymously from person to person and
country to country, thus facilitating trade, and it
is the principal measure of wealth.

money | Definition, Economics, History, Types, &

Facts | Britannica
Chinese & Filipino trade
Gold bars
Paper money
The Fiat Money
Problem with a Fiat money-
Inflation
 ◼ Controlled by the central
government
Problems ◼ Over-printing may lead to the
with a fiat decrease in the purchasing
power of money;
money ◼ Which may lead to inflation
◼ Its value decreases over-time.
 Printing
too much
money
leads to
inflation
Hyper-inflation in
Venezuela
Inflation has a great effect
on the pensioners
With regular salaries
Monthly salaries
The poor.
Is there a way to increase
the value of money?
Open a savings account?
Or invest in insurance companies?
But if your goal is to grow your
money, in the long run
(several years)
Stocks, Bonds & Mutual Funds

What is investing?
Investing is purchasing a financial product or other
item of value with an expectation of favorable
returns. (long term)

What is the purpose of investing?

The purpose of investing is to save money in order
to improve financial well-being. (saving vs investing)
-Saving is preserving money for a later time. While
investing is taking some risk to make it possible for the
investment to grow in value over time.

-While investing can help achieve long-term goals, saving

is an effective way of managing money to meet short-term
needs and to provide a safety net for emergency
expenses.
\
Business enterprise
 Stocks, Bonds & Mutual Funds
What is return on investment (ROI)?
ROI is the rate of revenues received for every
dollar on invested in an item or activity.

ROI rates vary with each

investment.

The higher the ROI, the better. A positive ROI is

money gained and a negative ROI is money
lost.
Stocks, Bonds & Mutual Funds
What are stocks?
Stock is an instrument that signifies ownership in a
corporation and represents claim on a share of a
corporation’s assets and profits.

Stocks are typically riskier and long-term

investments.

A minimum amount of money is needed up front to purchase investments.

Stocks may or may not pay interest and it is uncertain if one gets their
money back.
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Stocks, Bonds & Mutual Funds
What is real estate?

Real estate is a piece of land and any buildings or

structures on it.

Real estate is a long-term investment.

◼ A minimum amount of money is needed up
front to purchase real estate.

◼ Real estate does not pay interest and it is

uncertain if one gets their money back.

◼ Examples of real estate:

Personal home, rental home, rental
apartments, office space, and land.
Stocks, Bonds & Mutual Funds
What are collectibles?

Collectibles are items which have value due to its

rarity and desirability, such as antiques, coins,
cars, and art.

Collectibles are long-term investments.

https://www.antiques-prices.com/15-most-valuable-antiques-and-collectibles-1978
Stocks, Bonds & Mutual Funds
What are precious metals?

Precious metals are natural metals that have

value, such as gold, silver, platinum, and
palladium.

Precious metals are long-term investments.

Crypto-currencies (ex. Bitcoin)

You may watch more videos

on this.
https://youtu.be/6Gu2QMTAkEU?t=3
https://www.etoro.com/discover/markets/cryptocurrencies/coins
Stocks, Bonds & Mutual Funds
Do all investments offer a guaranteed positive
return on investment (ROI)?

NO! Although some investments are more likely

to have a positive return on investment.
Stocks, Bonds & Mutual Funds
How are risk and return related?
The greater the risk an investment may lose
money, the greater its potential to provide a
positive substantial return. The inverse is also
true.
Stocks, Bonds & Mutual Funds
What factors determine the degree of risk
investors take?
• Age
• Risk tolerance
• Investment goals
◼ Age – investors with more time to invest
can tolerate the market going up and
down
◼ Risk tolerance – comfort level of the
investor to deal with the ups and downs
◼ Investment goals – what the investor
wants to achieve with the money and
when.
Stocks, Bonds & Mutual Funds
Investor Profiles
Very Conservative – seeks to maintain the original value of the
investments and is prepared to accept lower returns for lower risk.

Conservative – seeks relatively stable returns and accepts some

risk through a diversified portfolio.

Moderate – seeks higher medium-term returns and accepts the

possibility of negative returns over short periods.

Aggressive – seeks high long-term returns and accepts the higher

possibility of sustained negative returns over short periods.

Very Aggressive – seeks to maximize long-term returns and accepts

the possibility of greater volatility and short-term capital losses.
◼ The comfort level of an investor
regarding ROI determines at which level
they should invest.
Stocks, Bonds & Mutual Funds

Types of investments
• Individual stocks
• Individual bonds
• Mutual funds
• Real estate
• Collectibles
• Precious metals
•Crypto-currencies like Bitcoin
•Business (small or large)
 Investment Attributes
Identify the attributes (qualities) for different investments. Answer the questions for each type of investment.

Piggy Savings Individual Mutual Individual Real Collect- Precious

Bank Account Bonds Funds Stocks Estate ibles Metals
Do you need a
minimum amount of
money to start/buy
it?

Can you get initial

money back?

Does it pay interest?

Can someone steal

it?

Is it professionally
managed?

Is it easy to access
the money?

Best for Long-Term

or Short-Term
Goals?
 Investment Attributes
Identify the attributes (qualities) for different investments. Answer the questions for each type of investment.

Piggy Savings Individual Mutual Individual Real Collect- Precious

Bank Account Bonds Funds Stocks Estate ibles Metals
Do you need a
minimum amount of
money to start/buy No Maybe Yes Yes Yes Yes No Yes
it?

Can you get initial

money back? Yes Yes Yes Maybe Maybe Maybe Maybe Maybe

Does it pay interest?

No Yes Yes Maybe Maybe No No No
Can someone steal
it?
Yes No No No No No Yes Maybe

Is it professionally
managed? No Yes Yes Yes No No No No

Is it easy to access
the money? Yes Yes No Yes Yes Maybe Maybe Maybe
Best for Long-Term
or Short-Term
Goals? Short Short Short Long Long Long Long Long
Stocks, Bonds & Mutual Funds

Uma will be retiring in five years. She needs a

low-risk place to put her money that will earn
interest. Where might she invest? Why?

Bonds would be a good place for her retirement

monies. They are typically low-risk and still pay
interest.
Stocks, Bonds & Mutual Funds

Skip will be retiring in 38 years. He has an

emergency fund that could support him for
nine months if something were to happen.
Skip wants his money to work for him and he
is not scared of market fluctuations. Where
might he invest? Why?

Stocks and/or mutual funds would be good options.

Typically, stocks and mutual funds perform well over
time and outperform other investments.
Stocks, Bonds & Mutual Funds

Imogene needs to start an emergency fund.

Where might she invest? Why?

A savings account in a bank would be a good option

for her. It is a low-risk investment, easily accessible
and it earns interest.
Stocks, Bonds & Mutual Funds

Anne is saving for a new car. She wants to

buy the car in three years. Where might she
invest? Why?

A savings account in a bank would be a good option

for her. She would earn interest, and it is a low-risk
investment.
Stocks, Bonds & Mutual Funds
There are different types of investment, and
all have different ROI.

The greater the risk on an investment, the

greater the possibility of high returns and also
negative returns.

The type of investment should align with your

investment profile.
Money is not evil. It is the “love of money” that is evil.
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