>>#1 is a minimum of 3 complete sentences.
(#2) Choose 2 investments from Chapter 2: one that is a good investment and one that is a bad investment (according to Dave). Explain why each is a good or a bad investment, using learnings and explanations from this chapter.
>>#2 is a minimum of 3 complete sentences per investment explanation for a total of 6 complete sentences!
TOTAL REQUIRED SENTENCES FOR THIS BLOG = 9
REMINDER: YOUR POST SHOULD BE YOUR ORIGINAL THOUGHTS!
**This blog is due Monday, September 24, 2018 at the BEGINNING OF YOUR CLASS PERIOD.
**REMEMBER: SPELLING, PUNCTUATION AND GRAMMAR ARE IMPORTANT!!
1. I think the FDIC is important to my investments because in the world we live in there is no telling what could happen to the American economy and my investments are safe under the FDIC. It also helps keep the foundation, American investors, under the economy. With a base, the economy is stronger and less likely to crumble completely.
ReplyDelete2. Real Estate is a great investment. Especially with the populations in the world rising, everyone needs somewhere to live. If you can buy a house cheap, put a little money in it, then sell it for a high price, you made profit. Personally, I think buying into the stock market without some knowledge of the company you're buying into, is a bad investment. New companies are so inconsistent with so many young entrepreneurs companies come from nothing, go to the top, then before you blink, are back at the bottom.
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ReplyDelete
ReplyDelete1. I believe FDIC is important to me because it can protect the money I put away from going away and/or losing it. For individual investors, it can help aid the protection of their money, so they don't have to risk it. This protection can help the economy from failing, because it insures money up to a certain amount. Meaning, people won't lose all their money. And without money, our country couldn't function.
2. I believe mutual funds are a good investment because you can use diversification. You don't have to put your money in one company and hope for the best. You can split your money up between different companies. One company could be doing bad, but the others you invest in could be doing better to make up for it. A bad investment would have to be gold. Yes, when gold first came out it would have been a good investment, but there are so many other valuable things that are worth a lot of money. Gold investments usually don't make you anything, so you aren't gaining anything from it. I mean you are putting your money away so you aren't wasting it on items, but you could also lose profit on it.
Question 1-
ReplyDeleteThe FDIC was created in to stabilize the economy and the then failing bank systems. It was meant to help provide security to members of that bank. This is important to me as an individual, because I can feel safe putting my money into the bank. Knowing there's a good chance it will still be there to retrieve when I need to. It's important to our country, because for people to invest we need to feel like they can still get money back at the end of it.
Question 2-
A good investment would be taking two thousand dollars and out 1/3 of that money in a money market and 2/3 of it into a mutual fund. That way it's into two accounts and is well spread around in the mutual. Creating a wide variety of diversification and almost a safety net. The money market would be less liquid than the mutual fund, but neither provide a huge amount of risk.
A bad investment would be putting all fo that two thousand dollars into a gold mine for 15% share. Those rarely pay off. Often have a much lower rate of return if they even have a positive return rate. The other worry is people selling fake shares.
1. The FDIC is like an investor's insurance, that way if the banks ever close, or fail, then the investors' money is protected. It is important because that gives investors a piece of mind in where they put their money. When they know it's insured, it will make them feel safer and confident to invest more money. It helps keep the economy moving, without a healthy economy, the world would pretty much explode.
ReplyDelete2. A mutual fund is an example of a good investment. Mutual funds are when people pool their money together and invest in something. As the value of the fund increases, then so does your return. Mutual funds are done by several people, rather than investing alone.
A Viatical is an example of a bad investment. It is when you invest in somebody’s will when they’re close to passing away, so when they die you get the money. Investing in a Viatical is quite honestly one of the easiest ways to scam somebody to make some money. Because once you invest, the person magically becomes healthy.
(#1) The FDIC has helped restore trust to the national banking system. This system was set in place to protect certain rights for individual investors. This system helps identify, monitor, and address risks to deposit insurance funds. Not only does this help the country, but it also limits the effect on the nation’s economy if a bank or institution were to fail.
ReplyDelete(#2) Mutual funds are a relatively good investment. This investment uses diversification to lower the risk of losing money. It depends on multiple companies rather than just one. This protects the investor from losing a large sum of money if one of the companies were to have a bad period because it also relies on the outcome of many other companies.
Viaticals are bad investments because of the amount of fraud connected with it. This investments requires the buying of a dying person’s insurance policy in order to earn money. The weird concept has been listed on the Federal Trade Commission’s top 10 list of scams on the market. By using this investment, you are only bond to lose money.
1) The FDIC protects banks in America, and has helped stabilize the banking system. For a long time, people could not trust banking institutions due to instability. This corporation promotes public involvement in banking, ultimately improving the economy due to increased savings and investing.
ReplyDelete2) Mutual funds are a good investment. Instead of trusting only one company, the investor relies on multiple companies. Even when one company does poorly, chances are others will thrive to pick up for the discrepancy.
Gold is a poor investment. The value of gold stays relatively the same and is not useful in a time of crisis, like a natural disaster or economic issue. Also, gold is not used as currency in many successful countries so the value is mostly for narcissism.
1) The FDIC helps protect American citizens from being manipulated by the banking system. After the Great Depression and the failure of the banks, the American people lost trust in the system. The FDIC was implemented to help stabilize the economy and restore trust while also improving the banking system. The FDIC continues to uphold this reputation and duty.
ReplyDelete2) Mutual funds are a good investment. Rather than investing in a lone company, "putting all of your eggs in one basket", you diversify and lower the risk of losing money. The diversification ensures that even if one company has bad performance the rest of the companies in the mutual fund pull the weight and the loss, if any, is relatively low.
Viaticals are a poor investment. They harbor a shady connotation, as they're associated with large amounts of fraud. Additionally, investing in a person's will is risky because if the person heals from their condition, you have to wait however many more years for a return.
1. FDIC basically insures people that there money is safe in the bank and will it'll be there no matter what. As an individual, it's nice to know that my moneys safe where I'm keeping it and it'll be there when I need that. That helps the country because we can have trust in each other and our company's. And as an economy, we wont fail because of people pulling out there money because of no trust which would make our economy collapse like in the 1930s.
ReplyDelete2. A good investment would be mutual funds because they spread your money all around so your not at a very high risk of losing everything. They are a good long term investment. Plus your return comes as the value of the fund is increased. A case of bad investment would be gold. As the public, we view gold as a glamorous money icon, but never, ever invest in it. Gold is just too risky as the prices are always moving and there is no possible way to see if its going up or down. Its all a guessing game for gold.
1) FDIC is important because it protects my money and I won't lose it. It provides a lower risk for any investors assuring their money is safe. FDIC protects our country suppling people with an amount of people they won't lose and with money our country can function.
ReplyDelete2) Mutual funds are a good investment because because they have diversification allowing low risk. With diversification all the money is not placed in area rather than a bunch of different ones so when one fails you still have money. When investing in companies, invest in many that way you make money.
A bad investment is gold. You don't gain anything from investing in gold and banking on the prices to go up isn't good, it's shown to stay pretty much the same for awhile. Even though you are putting the money away, your not making any profit off of it. So use other investments to make more money at the same time as protecting it.
#1- The Federal Deposit Insurance Company is an agency run by the government to help people with financial complications, such as when a bank fails. It helps people retrieve their money from a bank after it unfortunately fails. The FDIC also watches over activities in banks and such. It helps people in time of needs when banks fail and people need assistance. It helps our country not have a total failing economy. Also helps our economy keep going when certain banks fail.
ReplyDelete#2- Mutual Funds (Good)- Mutual funds is a good investment where investors pool their money to invest in many stocks, rather than one person investing in one stock that could easily fail and leave someone in a world full of hurt. The return of the comes as the value of the fund increases. Mutual funds is what Dave is talking about when he separates the eggs. Money is put into several stocks, so when something happens to one, there still is money in others, so the investor still has money in other places.
Gold (Bad)- Gold investments are bad investments because gold really isn’t worth as much as people think. Dave mentioned that none of the middle eastern countries never succeeded with gold, whereas people believe America did. It is also a poor investment because all of the investors money is put in one investment and that can hurt the individual when it fails.
The FDIC stands for the Federal Deposit Insurance Corporation. The FDIC exists to help protect people from the banks, whether its predatory lending or they are just mishandling your money. It also exists to help prevent banks from failing. If I were to put money in a bank and the bank would lose the money in a bad investment, the FDIC guarantees that I will get up to 250,000 back. The FDIC plays an important role in protecting investors and consumers.
ReplyDeleteAn example of a poor invest would to invest in something that is no diversified enough and you have little knowledge of the stock or company. You don't want to invest in something you have very little knowledge of, especially if it is a single stock, because if that fails you don't have anything to fall back on. A good investment would be in yourself. As you live your life , you are going to face a variety of circumstances, changing environments, and new roles that require you to adapt to them. A personal development plan will help you to handle the pressures that come with the never ending changes and challenges.
1. The FDIC is a organization that protects deposits in banks, and it was established to gain trust in the banking system of the U.S. The FDIC is important to me because it will ensure safety to my money I have in the bank. It is important to our country because without this safety, our country would fail. Also, it is important to our economy because it protects all the money without it getting stolen.
ReplyDelete2. One good investment from Chapter two is a mutual fund. I believe it is an example of a good investment because investors pool their money together to invest. As the value of the fund is increased, the return increases also. It is also a great idea investing with other companies and other people.
An example of a bad investment is gold. It is a horrible idea because the value has stayed about the same for many years. The 70-year track record of return averages only around 4%. Gold is a waste of money since you don’t make anything in return.
1) Basically, the FDIC insures people some amount of money in case their bank were to fail. It was brought up as a part of FDR's "New Deal". It helps to keep the risk of investments and banking as low as possible on the bank's end of things, as far as people not losing money.
ReplyDelete2) Good investment= Mutual funds. They are great long term investments because they are as diversified as possible, so it's a minimal risk. Investors all pool their money together to invest and a portfolio manager watch the fund to make sure the money stays safe. Return on the mutual fund comes whenever the value of the fund increases.
Bad= Viaticals. A viatcal is the purchase of the placement of beneficiary on someone else's health insurance. It's a bad investment because there is no certainty. The person may become healthy and live for thirty more years, or die sooner than expected. Viaticals also put a much larger risk of fraud along with the high risk of the viatical itself.
The FDIC is important because it helps us from another financial crisis like the Great Depression. It helps keep money in the banks and people are insured up to 250,000 dollars. The FDIC is important to keep the economy going and prevents major loss.
ReplyDeleteMutual funds are a good investment according to Dave. They spread the money around and are less risky. Mutual funds are also great ways to make money for the long run. A bad investment would be commodities. Commodities are bad investments because the agriculture market always changes. The history of the market is varied so investing in that would be more risky.
1. The FDIC was created in 1933 to allow people to put trust in the banks once again after the depression. This security makes me feel comfortable about putting my money in the bank and not having to worry about it disappearing. The banking system helps keep our economy afloat because it is what circulates our money.
ReplyDelete2. A good thing to invest in would be a mutual fund. A mutual fund is a good way to invest because you are diversifying your money. Mutual Fund money should be kept within the mutual fund for an extended period of time as they typically produce more return as time goes on, and this heightens chances of getting a better return once money is withdrawn. A bad investment is viaticals, there is no certainty when a person will die, even if it seems as if they could die within the day, I have seen a person that everyone thought would die make a complete turn around within 2 days. Investing this way is literally like betting on a persons life. This seems fraudulent and just morally unacceptable.
1. The FDIC is a system like a security blanket for money. It ensures the protection of money for single investors. For me, it protects money that I put away in case of a tragedy where my money or other people's money is in jeopardy. For the economy, the FDIC protects money to a certain amount to ensure the safe flow of money. Without money, companies and other institutions in the economy would/could fail.
ReplyDelete2. One type of good investment would be a mutual fund. In this type of investment, more than one person is pooling their money together. As time goes on, the return rate of this money rises. In this type of investment, people's money is less at risk and more spread out.
A bad type of investment is a viatical. In this type of investment, people buy out a dying person's insurance policy. This is a very risky type of investment and people's money is not insured at all. If the person does not pass away, the investor is completely out of their money. Viaticals are also full of fraud and cons compared to other investments.
The FDIC insures peoples money in the bank. It protected my money just incase I have a major destroy. Without FDIC or others like it the economy could fall.
ReplyDeleteA good thing to invest in is a mutual fund. This type of investment is were mutiapule people puts their money together. Over time rate gos up making more and more money. A bad type of investment is a vatical. There is no telling when someone will die or somehow become unhealthy. People are not insured at all.
The FDIC is an independent federal agency insuring deposits in U.S. banks and thrifts in the event of bank failures.
ReplyDeleteOne good thing to invest in is a mutual fund. They spread the money around and are less risky. Mutual funds are also great ways to make money in the long run and will help you out later in life.
Gold is a bad investments because gold really isn’t worth as much as people think. Dave mentioned that none of the middle eastern countries never succeeded with gold, whereas people believe America did.