Copyright © 2015
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Table of Contents
Chapter 1: Investor or Saver?
Chapter 2: Why Invest?
Chapter 3: Is Investing Risky?
Chapter 4: How Do I Begin to Invest?Chapter 5: Where Will My Investment Dollars Best Benefit Me?
My Favorite Sites
Do you invest or do you save? Is there a difference? Why invest? What’s wrong with having a savings account? Isn’t investing risky? How do I begin to invest? Where will my investment dollars best benefit me? Now those are great questions and you’re in luck. Answers to those questions are just page turns away.
Chapter 1: Investor or Saver?
Welcome to our investment meeting. I’d like to extend a warm welcome to all of you who have taken time from your busy life to join the investment conversation. Today we find ourselves with so many commitments blanketing our time; family, jobs,health, home upkeep- lawn, snow and cleaning to name a few. And then there is shopping, entertainment and vacations. Just glancing at all the faces in here I can see how important this subject of investing is to people.
“So we will start with an easy question for the group. Are you an investor or a saver? Okay sir, you in the rear.”
“I’m an investor.”
“Alright, explain to us why you consider yourself an investor.”
“Well, when I receive my paycheck each week, I deposit a little into my bank account like clockwork.”
“Okay sir, so after a year of making these clockwork deposits to your bank, what did that nice bank give you in return for the opportunity to have your cash?”
“Well to be honest, I was pretty disappointed. I received one measly dollar a month in interest.”
“Thank you sir.I’m thinking this is a reason many of you are here, your low paying bank accounts have discouraged you. I want you to remember the phrase, “Like clockwork.” We will come back to that. Let’s hear from another person. Let’s hear from the lady in the green jacket. Are you a Saver or an investor?”
“I’m a saver. After I cash my check I put aside 10% in a safe in my bedroom. I have done quite well.”
“Interesting. I guess that’s safer than putting it under the mattress. Since you have been placing the money in your safe, you only have what you put in; no interest, dividends or growth. Is that a correct statement?”
“Well, yes. I only have what I put in the safe.”
“Thank you for sharing. In this example you are just working for money. It should be the other way around. Your money should be working for you. Remember that phrase also. We will come back to it again and again.”