The four factors include safety and risk, investment income, investment growth,
ID: 2743218 • Letter: T
Question
The four factors include safety and risk, investment income, investment growth, and investment liquidity. Your choice of investments should be based on your personal financial goals, your willingness to assume risk, your age, and the amount of time you have for your investments to work for you.
Let’s imagine that you do have funds (it doesn't matter how much) to invest. (I realize that some of you may not be able to consider this possibility now, but let's dream.) Assume you must choose an investment that will help you obtain your investment goals.
Post a discussion message and rank the following investment options: common stocks, preferred stocks, corporate bonds, government bonds, mutual funds, and real estate. Use 1 for low to 6 for high and justify your choice for your investment portfolio. For instance, are you interested in safety/risk, income, growth, and/or liquidity? How does your age affect your decision? How does the time factor affect your decision? As a part of this discussion, use the Suze Orman method (Your Age - 21) to determine the percentage of your investments that should be invested in growth investments. Report these findings.
Explanation / Answer
1. Choose someone who favours low cost funds and charges a flat rate.
2. If the market goes up or down, focus on building a diversified portfolio with a mix of stocks and bonds that will grow in value over the long term.
3. Figure out an allocation strategy for your income.
4. if the price of the investment drops your dollar buys more shares, so invest if the price drops and average your investments thats leads to income. Continue in investment on regular schedule for either side of the price.
the above strategies will determine the percentage of your investments that should be invested in growth investments.
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