5 Golden Rules for a Golden Future

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    30-Dec-2015

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5 Golden Rules for a Golden Future. The only one responsible for your future is you!. 5 Golden Rules for a Golden Future. Improve your Education. 5 Golden Rules for a Golden Future. Dream and Dream Big. 5 Golden Rules for a Golden Future. Start Saving Now. - PowerPoint PPT Presentation

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  • 5 Golden Rules for a Golden FutureThe only one responsible for your future is you!

  • 5 Golden Rules for a Golden FutureImprove your Education

  • 5 Golden Rules for a Golden FutureDream and Dream Big

  • 5 Golden Rules for a Golden FutureStart Saving Now

  • 5 Golden Rules for a Golden FutureBecome Financially Literate

  • INVEST IN YOUR FUTURE

  • AGENDAWho I am, who I work for and what I doMoney SmartsDid you Know.Planning for the Future What is savingWhat is investingTypes of InvestmentsBecoming an InvestorQuestions / Contact us

  • WHO I AM, WHO I WORK FOR AND WHAT I DOAinsley CunninghamB.A., B.Ed., securities industry experienceManitoba Securities CommissionGovernment AgencySelf FundingMake and enforce rulesMandate - To protect the public and ensure that the markets are running fairly and efficientlyEducation and Information CoordinatorTV Programs, media relations, public presentation, industry events, marketing, national initiatives, web site development

  • MONEY SMARTSFinancial Literacy means being able to earn money, keep track of a bank account, use credit wisely and put cash aside for future needs. Having money smarts allows women to:Be self sufficientHave powerEnjoy equalityMake Choices

  • DID YOU KNOW.Canadian Youth earn earn money from part-time jobs, allowance and gift money.Canadian youth spend 14 billion annually (discretionary income)Money is typically spent on food, entertainment and clothingDebt among Canadians is extremely high

  • WHY IS PLANING FOR OUR FUTURE WHEN WE ARE YOUNG IMPORTANT?Cost to achieve our dreamsTime is on our side (Value of compounding)Few expensesRelatively easy (10% rule and pay yourself first)Good financial management habits formed when we are young are generally carried over into adulthood.

  • WHAT IS SAVING?To put asideTo accumulate

  • WHAT IS INVESTING?At its most basic, it is giving money to someone else with the expectation you will get a return

    What the return is will depend on what you invest in.

  • WHAT IS INVESTING?There are three characteristics that apply to all investments:

    Expected Return - Interest, dividends or capital gains you expect to receive.Risk - The possibility of losing some, all or more than the amount you invested or that you could earn a lower return than expected.Marketability - How easy it is to sell or redeem the investment.

    Understanding these characteristics is key!

  • TYPES OF INVESTMENTS Cash and EquivalentsFixed IncomeEquity InvestmentsMutual Funds

  • Types of Investments

    Advantages

    Disadvantages

    Savings Account

    Safe insured by govt up to a limit

    Pays interest

    Running record

    Interest rates are low

    Interest is taxed

    GICs

    Safe

    Higher interest than savings

    Keep money on deposit until it matures

    Interest is taxed

    Bond

    Safe investment small denominations

    Interest not as high as for other investments

    Interest is taxed

    Hold for several years

    Mutual Funds

    Safer than corporate stocks

    Allows diversification

    Invest smaller amounts

    Market Value goes up and down

    Stocks

    Unlimited potential return on investment

    Returns may decline

  • BECOMING AN INVESTORKnow YourselfAssess you financial situation- communicate clearly any changesIdentify your goalsKnow your tolerance for riskKnow you AdviserCredibility / Trust / ComfortInvestment Approach /Fees - cost of investing/Customer ServiceBecome InformedNewspapers, books and magazinesTelevision and research reportsClassesTalk to the Commission

  • RESOURCESStreet CentsMSC Web site (Other provincial web sites)Newspapers, books and magazinesProfessionals, friends and family Banks Credit Unions, Mutual Fund Dealers and Brokerage houses

    Very important that you take the time to do research because no one cares as much about your financial situation as you do.

  • QUESTIONS? / CONTACT USManitoba Securities Commission Phone 945-4733web site: www.msc.gov.mb.ca

    Todays presentation will cover the following topics.Be independent, make decisions, the boss of your own life.Make choices, follow your own rules and create opportunitiesfinancial equality leads to social equalityallows us to have more options (e.g.. Travel , to start a business to remain single et.)With virtually everything we do there is a cost, going to school, buying clothes, travelling or planning for retirementWhen you are young you have lots of time to plan for the future and benefit from the effects of compounding.Right now the majority of young people have few expenses.Higher returns usually means higher risk.Money issues are emotional Liquidity DefinitionRiskLiquidityRate of returnPick out one advantage and one disadvantage