Investment Planning

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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