Lesson Objective

Identify strategies recommended for a beginner investor and explain why these strategies may be beneficial
Explore their own risk tolerance through a worksheet
Experience making a variety of investment decisions through an interactive simulation
Understand what a brokerage account is and how to open one

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6a: Explain how traditional IRAs (individual retirement accounts), Roth IRAs, and education savings accounts provide incentives for people to save

1c: Assess their personal risk tolerance using an online tool or worksheet
2b: Compare nominal annual rates of return over time on different types of investments, including cash flows and price changes
6a: Recommend portfolio allocation between major asset classes for a short-term goal versus a long-term goal
9a: Identify several behavioral biases that can result in poor investment decisions (e.g. loss aversion, investing in employer stock, home bias, mental accounting)
10b: Explain how automating investment activities can help people avoid making emotional investment decisions
11b: Choose a discount broker and research the minimum starting account balance, minimum monthly investment, and trading costs

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