Unit 1: Industrialization, Immigration & The Progressive Movement

2. 
   Big Business
   
   1. 
      Dominance of Big Business
      

1. 
   Big Business = refers to the large number of corporations that dominated the Second Industrial Revolution
   
2. 
   Corporation = business that sell stock to the public
   
   1. 
      Stock = small piece of ownership of a company
      
      1. 
         People technically own the business but decisions made by a board
         
      2. 
         Get a percentage of the profit – called a dividend
         
      3. 
         3 Advantages to owning stock
         
         1. 
            People not responsible for debts, Dividends, Free to sell stock whenever and to whomever they want
            
      4. 
         People began to use stocks as investments
         
         1. 
            Investment = something you purchase in hopes that increases in value
            
         2. 
            Examples: stocks, houses, land, tickets
            
         3. 
            Non-examples: cars, TVs, video game systems
            
3. 
   Today
   
   1. 
      401k (employer sponsored retirement plan) – money you earn goes into your 401k retirement account and you don’t pay taxes on it until you retire
      
   2. 
      The money in that account buys stocks (small pieces of ownership in a corporation), bonds (loans to companies), and mutual funds (“basket of stocks” that people buy)
      
   3. 
      Most employers “match” your contribution up to a certain amount
      
   4. 
      ExxonMobil matches employees’ contributions up to 6% of their income
      
      1. 
         So if you make $50,000/yr and you put $3,000 into your 401k, ExxonMobil will put an additional $3,000 into your retirement account. It’s like free money! (Remarkably, 50% of people under 34 don’t contribute ANYTHING to their 401k, losing the free $$)
         
   5. 
      Since most of you will at some point have a 401k, you need to understand stocks, bonds, and mutual funds!
      

-1. A corporation is a basket of stocks sold together.________________________________________________

-2. Owning stock is owning a small part of a company. _____________________________________________

-3. A bond is a loan. _________________________________________________________________________

-4. A mutual fund is a group of stocks that are safer for investors. _____________________________________

-5. A dividend is a share of the losses that you have to help pay. ______________________________________

-6. You can wait until you’re close to 40 to start investing in a 401k and be able to catch up within 10 years. __________________________________________________________________________________________

Learning Goal 2 – I will be able to:

______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

1. 
   Go to www.tinyurl.com/LammSavingsCalculator
   
2. 
   On the top line, write “43 years =”
   
   1. 
      In the calculator, start with $1, monthly contribution = $500, interest rate = 6.5, and 43 for # of years. (Many of you will graduate college at age 22, and work 43 years to the age of 65.)
      
   2. 
      Write down the amount you’d have in your account on the top line of page 23
      
3. 
   On the second line, write “Wait 10 years =”
   
   1. 
      Keep everything the same except change the 43 to a 33, then calculate and write the amount on page 23. That’s how much you’d have if you waited until you were 32 to start saving for your retirement.
      
4. 
   On the next line, write “22-35 =”
   
   1. 
      In the calculator, start with $1, monthly contribution = $500, interest rate = 6.5, and 13 for # of years.
      
   2. 
      Calculate your amount
      
   3. 
      Copy that number and paste it into the starting balance
      
   4. 
      Type 0 for monthly contribution, and change the number of years to 30
      
   5. 
      Write that number on the line.
      
      1. 
         This is the amount you’d have if you decided to save $500/month for your retirement starting on your first day on the job at 22, then stop contributing when you’re 35, leaving your account alone and just letting interest add to it.
         
5. 
   On the next line, write “35-65 =”
   
   1. 
      In the calculator, start with $1, monthly contribution = $500, interest rate = 6.5, and 30 for # of years.
      
   2. 
      Calculate your amount
      
   3. 
      Write that amount on the line
      
   4. 
      If you wait until you’re 35 to start saving for your retirement, will you ever catch up? Write yes or no on the line.
      
6. 
   On the next line, write, “$1 million =”
   
   1. 
      Play with the calculator and see how much you have to save every month to work 43 years and retire with $1 million. Round to the nearest $10 and write that amount on the line
      
7. 
   On the next line, write $2 million =” and see how much you’d have to save per month to have $2 million.