Week 11 only included one day of class because the Thursday was part of fall break. During the Tuesday class we finished Chapter 13 on Investment Fundamentals that we had started on our own last Thursday. It was stated that time is the most valuable component of investing. Basically we have two investment choices, lending investments and ownership investments. Lending investments include bonds. Ownership investments include stocks. This chapter covered the nine sources of risk in the risk-return trade-off. A few of these risks are interest rate risk, inflation risk, and market risk. We discussed the differences between a bull market and a bear market. It was said that you should not invest if you cannot hold the investment for at least 3-5 years. Again time is the important component of investing.
The article that I chose for week 11 is "Giving To Charity-4 Smart Strategies" from www.schwab.com. The article lists four financial charitable giving ideas. They consist of a charitable remainder trust, a pooled income fund, a private foundation, and a donor advised fund. The charitable remainder trust is a trust that you control and put money into. You receive income from the trust for a certain number of years, and then the remainder goes to the charity. The pooled income fund is a way for charities to pool the funds of different individuals and invest them. A private foundation is a tax-exempt charitable organization set up by a person or persons. This is more costly and complicated than the other strategies. The final idea is a donor advised fund. This fund is a pool of money from donors managed by the charity. These are all great ideas for giving to charity.
The article that I chose for week 11 is "Giving To Charity-4 Smart Strategies" from www.schwab.com. The article lists four financial charitable giving ideas. They consist of a charitable remainder trust, a pooled income fund, a private foundation, and a donor advised fund. The charitable remainder trust is a trust that you control and put money into. You receive income from the trust for a certain number of years, and then the remainder goes to the charity. The pooled income fund is a way for charities to pool the funds of different individuals and invest them. A private foundation is a tax-exempt charitable organization set up by a person or persons. This is more costly and complicated than the other strategies. The final idea is a donor advised fund. This fund is a pool of money from donors managed by the charity. These are all great ideas for giving to charity.
| giving_to_charity-4_smart_strategies.pdf |
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