National Guard Family Program
Soldier with child riding piggyback Introduction to Personal Finance
An Overview for State Family Program Directors, Wing Family Program Coordinators, and Families.
 

Introduction

Evaluating Your Situation

Budgeting & Debt Management

Goals & Plans

Insurance & Disability Planning

Investment Planning

Education Planning

Retirement Planning

Estate Planning

 

 

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INVESTMENT

 

5.

Introduction

 

5.1

Asset Allocation

5.2

Diversification

  

5.2.1

Stocks

5.2.2

Bonds

5.2.3

Money Market Investments

5.2.4

Mutual Funds

5.3

Risk

5.4

Learning Check

 

5.2.1 Stocks

Investing in stocks gives you an ownership interest in the corporation issuing the stock. If the corporation does well, your investment should do well. If not, you could lose some (or all) of your money. The advantages of investing in stocks include the potential for higher returns over time than those offered by most other investments and returns that historically have outpaced inflation. Both of these advantages make stock investments an appropriate part of a portfolio designed to achieve long-term investment goals.

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