Couple of questions to answer today--answer them with the following format.....1.) 2.) 3.) so we know your answers match up with the questions and answer in complete sentences.
1.) Explain the comment in the book that "Risk decreases with time"
2.) Think about our stock market competition and then list the one stock that you have the most confidence in. If you went away from diversification then what stock would you put all your money into? (BTW-we all know that this is not wise to do, but pick one anyway)
and then...........Explain/Justify why you picked the company that you did--try to convince us that your stock is the best!!!!
3.) In the future, do you see yourself buying stocks or saving in a bank account? Explain your choice
4.) Give an example of the Rule of 1972---"The Michael Jordan of financial concepts".....show us you have an understanding of how it works....give an example.
5.) Would you encourage your kids (future!) to get involved in stocks?
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1. It means that when you wait for a longer time period, the probability of risk decreases.
ReplyDelete2. Google definitely. It has gone up since I've bought it and I've had it for so long that when it does goes down every once in a while, I have some cushion there.
3. Both because they are both ways to get money. I would start a savings account soon so then I have something to go on when I'm older.
4. Well if you have 72 shares at 8% it takes 9 years for it to double. Well compounding interest is the most important thing about investing. You need to let the interest build up your money.
5. Yes I would.
1.) Risk can be minimized by putting money away every year at a regular pace.
ReplyDelete2.) I have the most confidence in gold because when the dollar fails, if it does, gold will be a currency for the whole world.
3.) I see myself doing both but more emphasis on a bank account.
4.) 72/24=3%
5.) I would advise them to seek advice on which stocks to buy and how to be smart with that money.
1.) Explain the comment in the book that "Risk decreases with time"
ReplyDeleteIf you invest early, then if you lose some money, you can easily gain it back over some time, so if you have your money in for a long time, starting early, then you may lose a little, but gain a lot.
2.) Think about our stock market competition and then list the one stock that you have the most confidence in. If you went away from diversification then what stock would you put all your money into? (BTW-we all know that this is not wise to do, but pick one anyway)
and then...........Explain/Justify why you picked the company that you did--try to convince us that your stock is the best!!!!
I would pick Microsoft, because the technology is growing at a very rapid pace and new things are always coming out. :D. I think it would be very wise to invest in this area.
3.) In the future, do you see yourself buying stocks or saving in a bank account? Explain your choice
I would probably put my money in a bank account just to be safe, I don't want to lose any of my money.
4.) Give an example of the Rule of 72---"The Michael Jordan of financial concepts".....show us you have an understanding of how it works....give an example.
For example, you put 1,000 dollars in a bank account, at a 6% rate, the money would take 12 years to double to 2,000$. And so forth.
5.) Would you encourage your kids (future!) to get involved in stocks?
Yes I would because it can get you lots of money if you are lucky.
1.) Risk decreases with time because on average the stock market balances itself out.
ReplyDelete2.)I would put all of my money into google.
3.)I will most likely do both so if the stock market would crash around the time of my retirement, I would have something to fall back on.
4.)If you take 72 divided by the interest rate at that time, you will get how many years it will take you to double your money. So if it is 12% interest rate, it will only take 6 years to double my money.
5.)Yes I would want to teach them how to do it so they could make educated choices so they could have success.
1) Risk decreases because over time things are almost guaranteed to increase in value.
ReplyDelete2) Google
3) Yes, you can never go wrong with a stock unless you get yourself in too deep. I will definitely save in the future whether it is for me and saving for something I want to purchase or saving for my children.
4) Rule of 72 is a way for people to tell how fast money can grow and compound without using a financial calculator.
5) Learning about them in school would be essential so they know what they are and how to purchase wisely. So yes, I would encourage them.
1.) The longer you keep a stock the less risk of losing money you have.
ReplyDelete2.)ANF because so far that is my best one and so far it has gone down and then gone right back up.
3.) Stocks because you have more of a chance of making money. The stock market changes constantly, but the longer you stay with the stock the better of a chance you will do well.
4.)Compound interest are the best of financial concepts. You will have the best outcome with compound interest.
5.)Yes, I want them to first learn what they are and how they can help them. I would want them to learn that the longer you keep a stock the more money you will make in the end.
1) The more risk you take the more the risk go away or decrease with the time you hold it
ReplyDelete2) Disney- because it has always been there
3) Yes, because if you invest yourself in to something you may be granted with a higher price
4) 72 divided by the percentage that is given
5) not right away but teach them the importance of it
1. mean that if you wait longer your risk probability will decrease
ReplyDelete2. Cummins, they never went up or down for me they stay up all the time
3. stocks because you can always save money in the bank and when you do that you can earn more money while still saving your money into the bank
4. If you have 71 shares at a certain percent it will take a certain amount of year for that money in those shares to double
5. of course
1.) Because right away you are making the initial risk, then once you start to see the outcomes the risk of it decreases
ReplyDelete2.) I would pick google, because we all know that google will always be there, and it was so expensive that it must be a good stock. Also google is good because a lot of other people have boughten this stock. Also google is universal and everyone uses it.
3.) I see myself more saving in a bank account. I still don't understand fully the stock market so I would rather just save my money in an account. But once I am older I am sure i will invest in stocks.
4.) If I have 8% interest and then my money will double in 12 years. But if I only have 6% interest it will take 12 years to have my money double.
5.) Yes and early because the sooner you get in the more money you are going to make.
1.) Over time stocks tend to go up and in the short term they have ups and downs so overall if you were to invest it should be long term as to keep going up overall.
ReplyDelete2.) I would pick a stock in a construction company, because as we are slowly coming out of recession construction will pick back up and make the stock more valuable quicker.
3.) Buying stocks, because on average you receive a higher return.
4.) If you were to want your money to double in 12 years you would need to divide 72 by 12 to find 6 is the percent you would need of annual interest for your money to double in 12 years.
5.) Yes i will and I will help them get started.
1.)It means if you put money in regularly your risk will be smaller.
ReplyDelete2.)I would say that Aflac is my best one of steadily going up.
3.)I would probably do more of saving in a bank because you never know when you can lose big in stocks.
4.)You divide the number of years by 72 percent to get your interest you will get.
5.)Yes
1.Risk decreases thru time because the longer you let your money sit and work with the market the better it will work
ReplyDelete2.Google it is easily the best stock making me the most money in the shortest amount of time in upwards of $600
3. probably buying stocks mostly because it can be an easy way to make money if you have patience
4. The rule of 72 is a formula for finding the time needed to double your money for instance if you have a 6% interest rate take it divided 72 and you will find the time it will take to double
5. Yes especially at a young age in order to teach them that their money can work for them if they give it a chance
1. The longer you wait the less risk you will have.
ReplyDelete2. I would have to say harley davidson because it has been up for me since i bought it.
3. I would save in a bank account because there would be less risk.
4.72/12=6%
5. Yes if they want to.
1) The more time you wait the less risk you have.
ReplyDelete2) I would say HOG (harley davidson). It has made the most money for me yet.
3) I would probably do a little bit of both. Taking a risk but also having money set aside if you loose money in the stocks.
4) 72 divided by the % given.
5) that is going to be there chose.
1). If you wait for a longer time, the chance of risk goes down.
ReplyDelete2) First Horizon Natl Corp Com, I have had this stock through out the entire stock market thing and it has never went down.
3). I would probably do both because they are both ways to do money. A savings account is something I would used because I would know it would be there when i got older.
4). If you have 72 shares of 10% it will take 7.2 years to double Using compounding investing is something that not many people know about but helps you out the most in the long run because you have to let the interest build up.
5). I will let my kids do what ever they want to about stocks.
1) the longer you keep a stock, the less changes of losing money
ReplyDelete2) DUK because it is the one that is doing the best so far
3) I would choose stocks because you have a chance in making money on it and since the stock market changes a lot, I would keep the stock for a long time because you have a change on making money on it
4) 72 divided by how every much you are dealing with
5) yes i would because it could possibly help them earn money
1. It means that when you wait for a longer time period,but over time the probability of risk decreases.
ReplyDelete2. Google,it has gone up since I've bought it and its been my most reliable stock
3. Both because they are both ways to get money.
4. Well if you have 72 shares at 6% it takes 12 years for it to double. You need to let the interest build up your money.
5. Yeah
1. The longer somebody waits, the better chance you have. If stocks go down, they'll eventually go back up through time.
ReplyDelete2. I would buy Apple. They've continually gone up and they will for years to come. They're coming up with new inventions and better technology that will be purchased by many people in the future.
3.I would do both. I rather would try out the stock market after I have some money to invest. I could gain more money in the stock market if I invest wisely.
4. If I had 4% interest, it would take 18 years for it to double.
5. Yes, I would save up money that I can invest when I'm around 40 years old, and I'll let my kids have that after it has been left alone for many years.
1. Even if the stock market is down, the market has to raise sometime so therefor the risk decreases.
ReplyDelete2.CMI it has went down but it always rises back up again. sometimes its up $3.
3.I think you should have both stocks and save because either way it is making you money.
4. at 6% you can double in twelve years and if its 12% it will take 6 years
5. Yes i would advise them to because the world is run by money
1. The longer you save and put money in to invest regularly, the risk will decrease.
ReplyDelete2. My best stock is has been a gambling stock (LVS). It has gone up a lot and hasn't really lowered much at all.
3. I do have a saving account already and I will probably keep it, but investing in a stock is a good idea,too. Being risky will decrease later
4. if you have an interest rate of 12% it will take 6 years for the money to double, but if you had a 6% interest rate, it would take 12 years. so you would take 72/12%=6 years
5.yes, I would start them young to show them how to save money and how it will be benifical to them later in life
1.) The more time you are in something, the risk of a loss decreases with time.
ReplyDelete2.) I am most confident in my ONEQ which is part of NASDAQ. If I could of, I would of put all my money into ONEQ because NASDAQ is on the rise.
3.) I am already in stocks and a have a savings account in the bank that I put $50.
4.) 72/12=6% The concept is about that compound interest is the very best.
5.) Oh yes, I would help them get started at a young age.
1. The longer time goes on, the less risk there is.
ReplyDelete2.My best so far is Microsoft, it has been working really well.
3.I only have a Savings account, and only plan to have a Savings account.
4.The rule of 72 is any % divided by 72 will result in your interest.
5.I would definitly teach my children the frustration that is stocks!