Investing Unit 2: Summary

• Introduction
• Unit 1: Basic Building Blocks of Successful Financial Management
• Unit 2: Investing Basics

• Saving and Investing
• Risk
• Diversification
• Dollar-Cost Averaging
• Time-Value of Money
• Asset Allocation
• Investment Preferences
• Summary
• Action Steps
• About the Author

• Unit 3: Finding Money to Invest
• Unit 4: Ownership Investments
• Unit 5: Fixed-Income Investing
• Unit 6: Mutual Fund Investing
• Unit 7: Tax-Deferred Investments
• Unit 8: Investing with $mall Dollar Amount$
• Unit 9: Getting Help: Investing Resources
• Unit 10: Selecting Your Team of Financial Professionals
• Unit 11: Investment Fraud

• Study Guide
• Action Steps
• Monthly Investment Messages
• Glossary

In this unit we have discussed basic financial concepts that you need to understand before becoming involved in an investing program. You’ve learned about the difference between saving and investing, the predictable trade-off between risk and return, the importance of time to an investment program, and about asset allocation. In addition, you looked at various aspects of your personal situation and their possible impact on your asset allocation decisions.

The Action Steps for this unit suggest important actions for you to take to establish a solid foundation for future investing activity. Once completed, you will be ready to begin developing a personal investment plan. A necessary part of the plan is locating dollars to invest. The next unit will help you meet that challenge.

Work on the Action Steps now to get started.