Investing for teachers

What is compounding?

• Earning interest on your initial investment and also on the interest earned

• A complex math formula only professionals understand

• Something that investors shouldn't think about

• Something I learnt in school but can't remember now

You've decided to invest some extra cash. Which option will likely grow your wealth the most over time?

• Invest in the latest meme stock everyone's buzzing about online

• Diversify your portfolio across various asset classes for long-term growth

• Stick your cash under your mattress for safekeeping

• Buy a bunch of lottery tickets - it's all about luck, right?

What is the average annual return for stocks?

• 3-4%

• 5-6%

• Around 10%

• More than 15%

Imagine you have a basket for your investments. What does diversification mean in this scenario?

• Filling your basket with only gold bars (because they're shiny!)

• Putting all your eggs in one basket

• Filling your basket with only groceries - investing isn't about food!

• Putting some apples in your basket, along with some oranges and nuts

Investing in stocks always results in profit

• True

• False

What describes your dream vacation the most?

• Relaxing on a secluded beach with minimal expenses

• Backpacking through Europe, open to adventure and some surprises

• Luxury cruise with all the bells and whistles (money no object!)

• Lazing around on the hotel bed without any disturbance