Business and Personal Finance © 2007

Chapter 8: Saving and Investing

Chapter Summaries

• Before investing, set financial goals that are compatible with your values.
• Obtain money to start investing by setting aside funds before you buy other things; by contributing to employer-sponsored retirement plans and savings programs; and by saving gifts of money and unexpected windfalls.
• An investment's safety or degree of risk, income potential, and liquidity are factors to consider before choosing an investment. Also, diversifying your investments is wise.
• Savings and investment alternatives include savings accounts, certificates of deposit, stocks, bonds, some annuities, mutual funds, and real estate.
• Steps in developing a personal investment plan include establishing goals, determining funds needed and funds available, evaluating investments in terms of risk and return, and choosing at least two investments.
• Check your investments for yourself, keep track of them, keep accurate records, and consider the tax consequences of buying and selling.
• A great deal of investment information is available on the Internet, in books, magazines, newspapers, government publications, as well as from individual corporations and investment companies.