A Character and Leadership Development Program

Dave Ramsey’s

Investment Philosophy

Graded Exercise #1

Use Dave’s 7 Baby Steps Learning Objectives

Describe reasons for saving and investing

Explain

http://www.da

veramsey.co

m/specials/w elcome?ectid

=gaw.davera

msey brand1&gclid =CKKYzMPB k8ICFWIA7A odsH0AaQ Describe how time, money, and rate of interest relate to meeting specific financial goals Describe effect of investing saving from giving up soda Describe basic investment principles Describe various savings and investments alternatives You classify your investment choices as income investment or growth investment You balance the diversity of your portfolio • •

Income investment

: A type of mutual fund that emphasizes current income, either on a monthly or quarterly basis, as opposed to capital appreciation.

Growth investment:

A diversified portfolio of stocks that has capital appreciation as its primary goal, with little or no dividend payouts. • In finance,

diversification

means reducing non systematic risk by investing in a variety of assets

A Character and Leadership Development Program

Dave Ramsey’s

Investment Philosophy

Graded Exercise #1

Use Dave’s Investing Calculator

http://www.daveramsey.com/special s/welcome?ectid=gaw.daveramsey brand1&gclid=CKKYzMPBk8ICFWI A7AodsH0AaQ

Learning Objectives

Describe reasons for saving and investing Describe how time, money, and rate of interest relate to meeting specific financial goals Describe effect of investing saving from giving up soda Describe basic investment principles Describe various savings and investments alternatives

Explain Explain

You classify your investment choices as income investment or growth investment You balance the diversity of your portfolio • •

Income investment

: A type of mutual fund that emphasizes current income, either on a monthly or quarterly basis, as opposed to capital appreciation.

Growth investment:

A diversified portfolio of stocks that has capital appreciation as its primary goal, with little or no dividend payouts. • In finance,

diversification

means reducing non systematic risk by investing in a variety of assets

A Character and Leadership Development Program

Dave Ramsey’s

Investment Philosophy

Graded Exercise #1

Use Dave’s 7 Baby Steps

http://www.daver

amsey.com/spe cials/welcome?e

ctid=gaw.davera

msey brand1&gclid=C KKYzMPBk8ICF WIA7AodsH0Aa Q

Learning Objectives

Describe reasons for saving and investing Describe how time, money, and rate of interest relate to meeting specific financial goals Describe effect of investing saving from giving up soda Describe basic investment principles Describe various savings and investments alternatives

Explain

You classify your investment choices as income investment or growth investment You balance the diversity of your portfolio • •

Income investment

: A type of mutual fund that emphasizes current income, either on a monthly or quarterly basis, as opposed to capital appreciation.

Growth investment:

A diversified portfolio of stocks that has capital appreciation as its primary goal, with little or no dividend payouts. • In finance,

diversification

means reducing non systematic risk by investing in a variety of assets

A Character and Leadership Development Program

Dave Ramsey’s

Investment Philosophy

Graded Exercise #1

Use Dave’s Advice

http://www.daveramsey.com/special s/welcome?ectid=gaw.daveramsey brand1&gclid=CKKYzMPBk8ICFWI A7AodsH0AaQ

Learning Objectives

Describe reasons for saving and investing Describe how time, money, and rate of interest relate to meeting specific financial goals Describe effect of investing saving from giving up soda Describe basic investment principles Describe various savings and investments alternatives

Explain

You classify your investment choices as income investment or growth investment You balance the diversity of your portfolio • •

Income investment

: A type of mutual fund that emphasizes current income, either on a monthly or quarterly basis, as opposed to capital appreciation.

Growth investment:

A diversified portfolio of stocks that has capital appreciation as its primary goal, with little or no dividend payouts. • In finance,

diversification

means reducing non systematic risk by investing in a variety of assets

A Character and Leadership Development Program

Personal Investment Plan

Graded Exercise #2

Charity Savings/ Investments Housing Utilities Food Transporta tion Clothing Medical/ Health Personal Recreation Debts - New Car Insurance

My Personal Budget

Percent 10% 10% My realistic take home monthly income Monthly Budget $150 $150 25% 5% 10% $1,500 $375 $75 $150 1. 2.

Forecast Personal Savings & Investments

3. 4.

5.

Criteria

7% $105 6. 7. Total

My Investment Plan

A Character and Leadership Development Program

Personal Investment Plan

Graded Exercise #2

Criteria My Investment Plan

1. You select at least five products for your investment plan 2. You outline your investment strategy (amount to invest, how often, and when to invest) 3. You predict the potential value of your investments three years from now 4. You classify for investment choices as income investment or growth investment 5. You balance the diversity of your investments 6. Your plan is realistic for your near-term and intermediate-term goals 7. You explain how your investing plan aligns with your intermediate-term and long-term financial goals 1.

2.

3.

4.

5.

Give one example: • $____ = Starting balance • %___ = Rate of return • $____ = Monthly contribution • 3-years = Years plan to contribute Use above example: $____ How much investment will be worth See criteria #1, it clearly classifies my investment choices as: • Income investment and/or • Growth investment See criteria #1, it clearly demonstrates that I balance the diversity of my investments Explain near-term goal: Explain intermediate-term goal: Explain intermediate-term (3-12 months) goal: Explain long-term (1-year and beyond) goal: