Investment
Jackson aims to own a home and wish to advisesecure his retirement. This paper discusses the vital ventures and factors that can help him according on how and why he should consider having anto achieve his objective. Investment Planning Context sets the stage for our proposed investment plan. decisions by outlining: who we are Investment planning can be defined as the placing of funds into the proper investment vehicles based on the investors future goals, time horizon, and priorities. (What is investment planning, n.d). what we do. (Fisheries and Oceans Canada, 2010).
Investment planning is important because it enables a person to achieve his or hertheir financial goals. Investments can be achieved in the form of bonds, stocks, and also other types of securities. Jackson should adopt an investment plan in order for him to own a home of his choice and have a more secure his retirement. AnAs such, an investment plan will also assist Jackson to live a life that is more comfortable when he retireslife after retirement.
I would suggest Jackson to follow the followingAn investment plan comprises various steps when in setting up an investment plan. Firstly, he hasthat are vital to achieving the set objectives of the venture. First, there is a need to determine histhe specific goals to achieve from the investment plan. What does he want to achieve? How does he want to live in the future? He thenAlso, he needs to break the goals into short-term and long-term goalstargets. Jacksons Short-term goals include repaying his student loan of $ 30,000. He has to develop a plan of paying the student loan either monthly to avoid accumulation of the debt and penalties. His long-term goal include yearningincludes the need to own a home and live a more comfortable life than the present.. The next step Jackson needs to take is to set his time frame for achieving histhe identified goals. I could suggest Jackson to sit down,Thus, he should calculate on how he needs to achieve for hiswill realize the retirement scheme. Jackson is currently 44 years and he is left with thus has a few years remaining before he retireretirement. If the retirement benefit is 60 years, Jackson should be knowing well that he has only 14 years to save, after which he needs to have invested enough to be able to setbuy or build a home andto live a more comfortable. After which, JacksonThus, he should use this time frame and the goals to determine the exact amount of money he should figure out how much he needs to save. For instance he first needs to knowFurthermore, he should determine the value of the home he wants to own after which he then should get the monthly net salary subtractbuy or build and identify the remaining amount to save after deducting the monthly expenses and then see what is left.from his net monthly salary. After contributing towards his student loan and paying expenses on thefor child support he will see what is left and gauge on what he can, he should determine the most favorable amount to contribute per monthmonthly towards his retirement scheme.
The next thing Jackson needs to do is save. He actually needs to put it into practice and start saving.Additionally, he should save the amount identified monthly. He then should venture into a diversified business portfolio. He should and seek to invest in social security and discover what social security will pay. Jackson should remember to use by determining the amount to be paid at retirement. He should utilize a retirement calculator to enable him wen to retiredetermine the total amount of money to save and how much to start saving for the rest of the remaining period before he retires. He should now cut theproceed to reduce unnecessary monthly cost where necessary for himcosts to remain with a substantial revenue to be able to save.amount of saving. Lastly, Jackson should purpose to increase his saving incrementally. He should purpose to by consistently paypaying his student loan in advance and when done paying he shouldlater increase his savingsavings as the financial burden would have reduced.
I would suggestRegarding the following investment strategy to, Jackson. Value should invest in value stock mutual funds would do well for Jackson. A mutual fund is a professionally-managed investment scheme, usually run by an asset. (What is Mutual Fund- the Economic Times, n.d).. Better awareness related to various aspects of mutual funds will have a positive effect on investment of mutual funds. (Kaur and Kaushik, 2016)
He should look for identify and purchase stocks selling at a discount and purchase them. Consequently. Also, he can buy index funds and actively manage fundsthose that hold value. I encourage Jackson toHe should further spread risk by spreading his investment to a number ofinvesting in several ventures. He can also opt to take a certain proportion of his investment and buy growth stocks. Growth stocks, which normally perform best in thetheir mature stages. Using basic return generating processes and standard deviations, plus a recent well- specified study, we find stocks are less volatile over short to long horizons. (Korkie, 2017). HeHowever, he should only invest in themgrowth stocks when the economy is growing at a steady rate.
I advise Jackson toshould be aware of the followingcertain risks associated with investing .with regards tothe investment, especially mutual funds.Risk. Most of theminvestments are not guaranteed therefore you might lose money over what you investedhence the need to conduct research to identify the most viable ventures to avoid or reduce losses. A mutual fund can be subject to the market risk as the income generated by the securities held by mutual funds maymight decline.
Jackson maycould also face credit risk while investing in mutual funds. Credit risk normally occurs when the counter party is unable tocounterparty cannot meet itstheir financial obligations in full or on time. Another risk is Additionally, the interest rate risk which involveinvolves the risk wherechanges in an investment value will change due to change in the level of interests., which might reduce the returns realized from an investment. Jackson maymight also face liquidity risk. This risk existsrisks due to lack of marketability of the securities. SomeAt times, it can be hardis difficult to sell the securities and thus the need for Jackson should hedge for the aboveto identify and plan to mitigate these financial risks.
Jackson should adopt the following measures to reduce the investment risk that he maymight face while investing his money I order to achieve his financial goal and freedom after he retires. Generally,retirement. Jackson should consistently review his investment goals and purpose to invest in securities that will destroyincrease his wealth. Before he decide to invest in either of the above opportunities, he needsIt is vital to seek an advice from a financial expert in orderadvice before embarking on an investment to obtain appropriate information on which securities he canto invest to getreceive maximum returns. HeAlso, he should make sureensure that he diversifies his investment. If one fails, other investments will still enable Jackson see through his financial goal to retire reaping big and not bitterspread the risk of failure.
Jackson can get investment information from financial and economic theory. It provides a strong foundation to base investment decisions and discusses the various periods of inflation. When inflation is high, securities like bonds should be avoided since they yield much lower return. Therefore, investing money in stores of value that rise in inflation will be appropriate at the peak of inflation. He can also access historical performance of assets including stock and bonds. This can provide information on which asset price will rise in future. Lastly, additional information from prospective documents that accompany the issuance of bonds and mutual funds will be eminent. Some of these documents include the quarterly and annual investment reports on stocks and securities. They provide up to date information on the market trends of the stocks and thus crucial tool for accessing the economy on investment.
References:
Fisheries and Oceans Canada. (2010). Investment Plan 2010/11- 2014/15. (2010). Integrated
Business Management Services. Ottawa.
Korkie, R. (2017).Investment Horizon Risk and Volatility Metrics. Vol 15.
Kaur, I., Kaushik, p. (2016). Journal of Indian Business Research: Determinants of investment behavior of investors towards mutual funds. Vol.8, pp 19-42.
What is investment planning, (n.d). www.investorwords.com.
What is Mutual Fund-The Economic Times, (n.d). https://m.economictimes.com.
chris10 answered the question on April 4, 2018 at 07:11
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In each case, explain why you selected the distribution and draw attention to any feature which supports or casts doubt on the choice of distribution.
Situation 1:
The lifetimes of a certain type of electrical components are distributed with a mean of 800 hours and standard deviation of 160 hours.
Required:
Identify situation 1. (2 marks)
If the manufacturer replaces all components that fail before the guaranteed minimum life time of 600 hours, what percentage of the components have to be replaced?
(3 marks)
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a)Explain briefly the application of calculus to economic models, especially in the context of maximizing contribution and minimizing costs.
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R = 1000q – 16q2 and the cost per week of company B excluding cost of the products bought from company A are given by the function.
C = 2q2 + 80q + 400
Company A can restrict the weekly supply of its product to company B, but cannot raise the unit price above Sh. 200. The two companies are considering whether to merge together into a single company.
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A. Summarize the Communication Strategy
Locate an article that discusses the communication strategies used by your chosen organization. After reading your chosen article, you may find the exercise below to be helpful in developing a summary paragraph. Identify the author(s) of your chosen article, and complete the following exercise:
[Insert author’s name here] discusses how innovative communication processes have helped [insert name of the organization here] resolve [insert issue here].
The top reason [insert author’s name here] holds that position is __________.
A second reason [insert author’s name here] holds that position is __________.
A third reason [insert author’s name here] holds that position is __________.
After filling in the blanks, you should have a list of the positions and claims made by the authors about your chosen organization. Shape your notes into a summary paragraph. (Do not simply include the list that you completed in the exercise above.)
Remember that the summary paragraph is where you will present information from the source. You will provide your analysis and interpretation in the following section of the paper.
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In the analysis portion of the assignment, discuss any problems (or potential problems) with the communications in your chosen organization, and provide potential solutions based on your research. Include ways that effective management could help to provide a solution.
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You will need to reference at least two academic sources.
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