401K, Stock Indexes, Mutual Funds and ETFs
Take notes/answer questions for all
1. Lessons from 401k millionaires
2. What are stocks
3. Why do stocks go up and down?
4. What is the S&P 500?
5. What is the Dow Jones Industrial Average? (aka, DJIA, the Dow)
6. The current companies that make up the Dow (the list can change. Apple was just recently added, replacing AT&T)
- which company has seen the biggest YTD (year-to-date - which means since January 1, 2015) gain?
- which company has seen the biggest YTD loss?
- how many companies have seen an increase YTD?
- how many companies have seen a decrease YTD?
7. An Introduction to Mutual Funds. Take notes on this as your answer.
8. What is an Exchange Traded Fund (ETF)
9. Best ETFs. List five (5) and describe what sector they track.
10. How to Choose a Mutual Fund
11. How mutual funds and ETF are the same and different
12. How to understand index funds
No #13. Bad luck.
Use this link to answer questions 14-18 Vanguard Total Stock Market Index Fund (VTSMX)
14. - if you'd invested $10,000 ten years ago in VTSMX, approximately how much would it worth now?
15. - what have been the 1 year, 3 year and 5 year performance of the VTSMX?
16.- what is the minimum initial investment? What does that mea
17.- how many stocks would you own if you bought this fund?
18.- what are the funds ten biggest holdings? (i.e., which stocks make up the biggest percentage of the fund's holdings?)
19.- how do the fees compare to the industry average for mutual fund fees?
Get a recommendation based on your goals (assume you are 21-22 years old and you've got a job).
Use the above link to answer q20-22
20. Do a scenario for a short-term goal, medium goal and long-term goal
21. Review the recommendations that are provided and identify the 1 year, 3 year, 5 year return
22. What do you notice about the differences/similarities in performance of the recommendations based on the length of your goal?
23. Now, do your own research. Other than the Vanguard fund listed above, find TWO (2) low cost (i.e., low fee), low initial investment (<$1000) total stock market index or ETF funds. Identify the following for each:
24. What's the minimum initial investment?
25. What are the total fees?
26. What were the 1 year, 3 year, 5 year and 10 year returns
27. What is dollar cost averaging and what are the benefits of dollar cost averaging?
28. Write two paragraphs (15-20 sentences) summarizing a) what you have learned and b) how you can use this information to put your money to work and to pay yourself first
1. Lessons from 401k millionaires
2. What are stocks
3. Why do stocks go up and down?
4. What is the S&P 500?
5. What is the Dow Jones Industrial Average? (aka, DJIA, the Dow)
6. The current companies that make up the Dow (the list can change. Apple was just recently added, replacing AT&T)
- which company has seen the biggest YTD (year-to-date - which means since January 1, 2015) gain?
- which company has seen the biggest YTD loss?
- how many companies have seen an increase YTD?
- how many companies have seen a decrease YTD?
7. An Introduction to Mutual Funds. Take notes on this as your answer.
8. What is an Exchange Traded Fund (ETF)
9. Best ETFs. List five (5) and describe what sector they track.
10. How to Choose a Mutual Fund
11. How mutual funds and ETF are the same and different
12. How to understand index funds
No #13. Bad luck.
Use this link to answer questions 14-18 Vanguard Total Stock Market Index Fund (VTSMX)
14. - if you'd invested $10,000 ten years ago in VTSMX, approximately how much would it worth now?
15. - what have been the 1 year, 3 year and 5 year performance of the VTSMX?
16.- what is the minimum initial investment? What does that mea
17.- how many stocks would you own if you bought this fund?
18.- what are the funds ten biggest holdings? (i.e., which stocks make up the biggest percentage of the fund's holdings?)
19.- how do the fees compare to the industry average for mutual fund fees?
Get a recommendation based on your goals (assume you are 21-22 years old and you've got a job).
Use the above link to answer q20-22
20. Do a scenario for a short-term goal, medium goal and long-term goal
21. Review the recommendations that are provided and identify the 1 year, 3 year, 5 year return
22. What do you notice about the differences/similarities in performance of the recommendations based on the length of your goal?
23. Now, do your own research. Other than the Vanguard fund listed above, find TWO (2) low cost (i.e., low fee), low initial investment (<$1000) total stock market index or ETF funds. Identify the following for each:
24. What's the minimum initial investment?
25. What are the total fees?
26. What were the 1 year, 3 year, 5 year and 10 year returns
27. What is dollar cost averaging and what are the benefits of dollar cost averaging?
28. Write two paragraphs (15-20 sentences) summarizing a) what you have learned and b) how you can use this information to put your money to work and to pay yourself first