NIKKI BOSZKO SAVINGS/INVESTMENT PORTFOLIO 100,000

• Checking account
• Savings account
• Money market deposit
• Certificate of deposit
• Savings bonds

CHECKING ACCOUNT 20,000

• Account at a bank which checks can be drawn by the account depositor
• .31% interest rate
• Moderate risk, accounts aren't immune to fraud
• Open at bank
• Linked to debit card(your money in the bank)

SAVINGS ACCOUNT 20,000

• A bank account that earns interest
• .75%-.95% interest rate
• Low risk, no one can get into your account
• Open in bank

MONEY MARKET DEPOSIT 20,000

• (MMA) Is a financial account that pays interest based on current interest rates in the money markets
• .85% interest rates
• Low risk, insured by FDIC
• Open in bank
• Similar to savings but need $1,500 to open
• Allows a limited number of checks to be drawn from the account each month

CERTIFICATE OF DEPOSIT 20,000

• A certificate issued by a bank to a person depositing money for a specified length of time
• 1.36% interest rate
• Low risk
• Inflation is the greatest risk you face
• Penalty if you withdraw funds before maturity, inflation can invisibly erode your savings

SAVINGS BONDS 20,000

• A bond issued by the government and sold to the general public
• Series EE=.10% Series I=.26% Series I variable rate= .16% Series I fixed rate=.10% interest
• Low risk
• EE earn same rate of interest up to 30 years
• Can buy and cash online at TreasuryDirect. Can still cash paper at many financial institutions.

Why diversification is so important?
Diversification is the most important component of reaching long-range financial goals while minimizing risk, it aims to maximize return by investing in different areas that would each react differently to the same event.

Why should individuals change their savings and investment plans throughout their life cycle? Financial goals change over time following changes in earnings, marital status, and economic conditions. Throughout this life cycle, individuals have to continually refine their personal financial plan.