Background and Directions: Your goals for investing will depend on your age, lifestyle, reason for investing and income. As you earn more money, you can move through the different stages of investing. Read each example below. Can you identify what stage of investing these examples fit in?

Here are the various stages of investing:

Stage 1: Put-and-Take Account Stage 2: Initial Investing

Stage 3: Systematic Investing Stage 4: Strategic Investing

Stage 5: Speculative Investing

Example #1: An investor purchases a home in disrepair. The investor fixes and remodels the home and then sells it for a profit.

Stage:

Example #2: A person deposits their paycheck into an account at the bank. She then uses the money to pay her monthly bills.

Stage:

Example #3: Putting money into a 401k account.

Stage:

Example #4: Investing in low quality junk bonds (high interest rate but market price is volatile).

Stage:

Example #5: Managing your investment portfolio so it will grow.

Stage:

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Example #6: A person puts money in safe, conservative investments.

Stage:

Example #7: Develop diversified investments. If one of the investments is not performing well, move the money to a growing investment.

Stage: