Investing and Financial PlanningInvesting and Financial Planning

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Investing 101 Risk vs. Return

Double Time

• Profit earned on an investment

• Period of time for an investment

• The amount that is agreed to be paid in return for the use of a certain amount of money

• Amount of money you invest to make money

• People coming together to buy and sell investments

• Chance that you will commit your money and not get it back-when you need it

• Chance that the money you have saved or invested will not keep up with the cost of living

• Chance that your investment will lose value because of a decline in the market

• Best way to reduce risk

• Lower risk investments = this type of return

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• Return

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• Term

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• Interest

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• Principal

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• Market

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• Liquidity Risk

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• Inflation Risk

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• Market Risk

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• Diversification

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• Potential for lower return

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