Class Notes:
- time and preparation is key when it comes to investing
- as Warren Buffet says "Noah did not start building the ark when it was raining"
- noah principle: start early
- compound effect: how your investment increases with each year and is able to produce even more returns
- snowball effect: your money slowly builds up and is able to collect even more snow
- best way to invest your money is to take an allotted amount out of your earnings as soon as you receive it rather than after you've spent money
- this allowing to stick to your budget and will end my making you invest more
- DO NOT invest if you have credit card debt
- most credit card companies charge around 18-20 percent while the average stock will only provide you with a 10% return. Thus you are simply losing 8%
- margin accounts: when you borrow money to invest
Home Discussion/ Project Research:
After further discussing I have decided not to take my one thousand dollars out of gift account and I will only invest the four hundred and thirty five dollars I made over summer. And since I do not have the thousand dollars minimum required for the Roth IRA vanguard stock index I will have to research another source of investment where the minimum is lower; possibly a passively managed stock index. I might, however invest in the Vanguard Windsor II, and even though this is actively managed the expense ratio is very low.
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