Professional Documents
Culture Documents
Checking Savings Investments
Checking Savings Investments
Savings
Investments
Checking Account
90% of
transactions
involving
money are
made with
checks.
What is a check?
1. Share Account
2. Personalized Savings accounts
3. CD
4. Money-market deposit accounts
5. IRA traditional, Educational, Roth
6. Stock
7. Mutual Funds
Stocks
1. Preferred stocks--Dividends
2. Common stocks--Common
Other options
BONDS
MUTUAL FUNDS
COMMODITIES
GOLD, SILVER, COLLECTIBLES
Rule of 72
For example:
At 6% your money will double in 12 years
Retirement Plans
Personal
Auto
RV
Mortgage
Home Equity Credit
Student
PERSONAL LOAN:
1. Secured
You use your savings account or certificate of
deposit as collateral. You can borrow against the
amount you have on deposit. Low interest rates.
2. Unsecured
An unsecured loan allows you to borrow without
collateral. Your loan amount will be based on your
income and ability to repay. Interest rates will be
higher
What determines if a financial
institution with loan you money?
Credit Report
FICO Score
BK Score
Proof of line of credit
Debt to Income Ratio
How to determine your loan
Monthly Income (after taxes)
Current Monthly Payment obligations
rent
credit card
other loans
total obligation
Income divided by obligations: should
be lower than 40%
Maximum loan payment