Finance Project

By Author: Sherry Roberts
Total Articles: 77
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The aim o f the current personal investment portfolio is to generate $ 250,000 for ten years as capital to start a business. In order to achieve the target, I will use three investment strategies that include buying stock, bond, and personal saving. The plan is to invest in high-yielding investments in the first five years so as to generate enough capital to invest in more stable areas in the last five years of the investment plan. As such, the plan is to make sure the first five years are dominated by personal saving, followed by stocks and then bonds. In the first five years, personal saving will constitute 45% of the plan, stock 30% and bond 25%.

Then in the last five years, bonds will dominate the strategy (55%), stocks (30%) will follow and then personal saving will decrease to 15%.

The rationale for the strategy is because bonds are more stable. Bonds will provide a more defensive strategy and a conservative position to ensure the saved earnings during the first five years are preserved. In addition, the large amount of bonds will ensure the safety of the principal and periodic interest income, ...
... unlike stocks that can fluctuate.

The assumption is that I hold $ 8,716 as the initial or principal investment and I intend to make a monthly contribution to saving account of $250. By the end of the first year, the principal plus the annual saving will be invested as per the first strategy (stock 30% and bond 25%). The investment plan will be re-evaluated annually to consider income status and performance of stock and bonds.

Sherry Roberts is the author of this paper. A senior editor at Melda Research in online nursing papers. If you need a similar paper you can place your order for a custom research paper from custom research paper services.