Learning Target: IWBAT describe the risk and return of various investment vehicles and the importance of diversification

UNIT 1, LESSON 5RETURN ON INVESTMENT

Return on Investment When is a time that you have received a good return on

investment? Remember that you can invest more than just money….

PREVIEW

Savings Account: account that pays interest, has no maturity date, and from which funds can be withdrawn at any time without penalty

Certificates of Deposit (CD): time deposits that state the amount of deposit, maturity, and rate of interest being paid

Stocks: share of ownership in a corporation that entitles the buyer to a certain part of the future profits and assets of the corporation

Bonds: investment in which an investor loans money to an entity that borrows the funds for a defined period of time at a fixed interest rate

Mutual Funds: investment company that pools the funds of many individuals to buy stocks, bonds, or other investments

Individual Retirement Accounts (IRA): private retirement plan that allows individuals or married couples to save a certain amount of untaxed earnings per year with the interest being tax-deferred

401k: defined contribution plan where an employee can make contributions from his or her paycheck either before or after-tax

Pension Plan: company plans that provide retirement income for their workers

VOCABULARY

Textbook Pages: 155-159 Suze Orman Video 1 Suze Orman Video 2

READING

Based on what you learned in class today, what do you think is the best retirement option for you? Explain your answer

HOMEWORK