1) SAVINGS ACCOUNT $20,000

• Interest-bearing accounts
• Average interest earned is 0.06%
• Virtually risk free
• Your "emergency fund"
• Any bank will set this up
• I chose $15,000 because it is a good start up fund.

2) CERTIFICATE OF DEPOSITS $10,000

• Deposited money for a specific amount of time
• Average interest earned 0.51%
• On average there is no risk
• Similar to a savings account
• You can set up at banks or a credit union
• I chose $10,000 because it's half of my savings account
• Safe investment you can make

3) STOCKS $25,000

• An investment that represents shares of ownership of earnings in a corporation
• %12 interest rate returned
• Very risky but more money
• I chose $25,000 because stocks gives the best outcome of money making
• Part of a well done investment portfolio
• Security of creditors
• Can invest in stocks with assistance

4) MUTUAL FUNDS $20,000

• Program funded by shareholders that trade in diversified holdings
• Interest rate earned: 0.5%
• Moderately risky
• Pool of money full of big investors
• I chose $20,000 because there is a high interest rate
• You can own these through the bank
• Invest in a variety of bonds and stocks

5) CORPORATE BONDS $25,000

• To lend money to a business on the promise that debt will be paid, with interest
• Less riskier than stocks
• 4% interest yield return
• $25,000 chosen because bonds are diversified
• You can invest in these at central banks
• Allows investors to tailor a bond portfolio

Diversification is the most Important component of reaching long term financial goals while minimizing risk.

The world around us is constantly changing. With that, we must stay up to date on our savings plan. We cannot be stuck in the past or we will lose our money. It's important to have variety. We need to start investing earlier in our lives.