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If your Wealthy Uncle gave you $10,00 today, what would you do with the money?

If your Wealthy Uncle gave you $10,00 today, what would you do with the money?. “The Richest Man in Babylon”. “A part of all I earn is mine to keep” “Learn to make your treasure work for you. Make it your slave. Make its children and its children’s children work for you.”

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If your Wealthy Uncle gave you $10,00 today, what would you do with the money?

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  1. If your Wealthy Uncle gave you $10,00 today, what would you do with the money?

  2. “The Richest Man in Babylon” • “A part of all I earn is mine to keep” • “Learn to make your treasure work for you. Make it your slave. Make its children and its children’s children work for you.” • “Wealth grows in magic ways”

  3. What is the Power of Compounding Interest?

  4. AssumptionsTime 0 = TodayTime 1 = 1 Year from Today10% Return

  5. AssumptionsTime 0 = TodayTime 1 = 1 Year from Today10% Return

  6. AssumptionsTime 0 = TodayTime 1 = 1 Year from Today10% Return

  7. AssumptionsTime 0 = TodayTime 1 = 1 Year from Today10% Return

  8. AssumptionsTime 0 = TodayTime 1 = 1 Year from Today10% Return

  9. AssumptionsTime 0 = TodayTime 1 = 1 Year from Today10% Return

  10. AssumptionsTime 0 = TodayTime 1 = 1 Year from Today10% Return

  11. AssumptionsTime 0 = TodayTime 1 = 1 Year from Today10% Return

  12. AssumptionsTime 0 = TodayTime 1 = 1 Year from Today10% Return

  13. AssumptionsTime 0 = TodayTime 1 = 1 Year from Today10% Return

  14. AssumptionsTime 0 = TodayTime 1 = 1 Year from Today10% Return

  15. Does Interest work FOR you or AGAINST you?

  16. Advice from Church Leaders • First, gain an adequate education. • Second, live strictly within your income and save something for a rainy day. • Third, avoid excessive debt. Necessary debt should be incurred only after careful, thoughtful prayer and after obtaining the best possible advice. We need the discipline to stay well within our ability to pay. Wisely we have been counseled to avoid debt as we would avoid the plague. • “Interest never sleeps nor sickens nor dies. … Once in debt, interest is your companion every minute of the day and night; you cannot shun it or slip away from it; you cannot dismiss it; it yields neither to entreaties, demands, or orders; and whenever you get in its way or cross its course or fail to meet its demands, it crushes you” (in Conference Report, Apr. 1938, p. 103). Source: L. Tom Perry, “If Ye Are Prepared Ye Shall Not Fear,” Ensign, Nov. 1995, 35

  17. What have others said about debt? • “Do not accustom yourself to consider debt only as an inconvenience; you will find it a calamity.” (Samuel Johnson.) • “The debt-habit is the twin brother of poverty.” (Theodore Thornton Munger.) • “Poverty is hard, but debt is horrible.” (Charles Haddon Spurgeon.) • “I have discovered the philosopher’s stone, that turns everything into gold: it is, ‘Pay as you go.’ ” (John Randolph.) • “Think what you do when you run in debt; you give to another power over your liberty.” (Benjamin Franklin.) Source: Ezra Taft Benson, “Pay Thy Debt, and Live,” Ensign, June 1987, 3

  18. There is “a time” to many things in life. . . 1 To every thing there is a a season, and a time to every purpose under the heaven: 2 A time to be born, and a time to die; a time to plant, and a time to pluck up that which is planted; 3 A time to kill, and a time to heal; a time to break down, and a time to build up; 4 A time to weep, and a time to laugh; a time to mourn, and a time to dance;* * ECCLESIASTES CHAPTER 3

  19. Investing Stocks Bonds Mutual Funds Real Estate Start a Business Etc. Protection 401K IRA Life Insurance Car Insurance Wills & Trusts Education Fund for Children What can you do to Prepare for the Future?

  20. What are Stocks? • Stocks are pieces of the corporate pie. When you buy stocks, or shares, you own a slice of the company.

  21. How do you make money Owning Stock? • Dividends • Increases in Stock Price

  22. What are Bonds?

  23. What are Mutual Funds? • Over 9,500 funds • Over 400 fund families

  24. Funds make Money by • Dividends (stock) • Interest (bonds) • Selling stocks or bonds at an increased price.

  25. What is Net Asset Value? • Shares in a fund are purchased at the NAV

  26. There are Mutual Funds that focus on . . . • Stocks • Bonds • Balance (Stocks & Bonds) • Sector • Index • Green and other conscience funds • Precious Metals • Gold Fund • International Funds

  27. Fees or Sales Charges • Front-end Load: Pay a fee when you purchase funds. If 5% front-end load, have $100, invest 95 • Back-end Load: (also called Contingent deferred sales charge) Get charged when you sell shares • Level Load: No front-end or back-end charge - but imposes annual fees. • Redemption charge: type of back-end load to discourage frequent in-and out trading. • 12b-1 fees: Marketing and advertising fees.

  28. Three basic ways you can Participate in the Market • Trader • Speculator • Investor

  29. www.Moringstar.com

  30. Why do you want Life Insurance? • Pay off a home mortgage or other debts. • Provide income for a spouse. • Provide a lump-sum payment to children when they reach a specified age. • Provide education for children. • Provide retirement income. • Accumulate savings. • Establish a regular income for survivors.

  31. How much Life Insurance do you Need? Consider the following: • What sources of money would your survivors have today if you died? • How much money do your survivors need? • What investments do you currently have? • What are your current debt obligations? • What big events will be coming up in your survivors life (mission, school, marriage)?

  32. Books that I would Recommend… • The Richest Man in Babylon • The Wall Street Journal Guide to Understanding Money & Investing • The Wall Street Journal Guide to Planning Your Financial Future: The Easy-To-Read Guide to Planning for Retirement

  33. Investing Stocks Bonds Mutual Funds Real Estate Start a Business Etc. Protection 401K IRA Life Insurance Car Insurance Wills & Trusts Education Fund for Children What can you do to Prepare for the Future?

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