Topic 6 DQ 1

docx

School

Grand Canyon University *

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Course

210

Subject

Finance

Date

Nov 24, 2024

Type

docx

Pages

1

Uploaded by danie85

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With so many investment options available, explain what you see as the two main considerations in choosing the appropriate investment vehicle to help you achieve your financial goals and why. The two main consideration that I see are how much of a return do I need and the safety of my investment. I believe that my financial goals could benefit from having both stocks and CD’s, and even a traditional online savings account as well. My safety will be set in a savings account and CD as there is no money up for risk, just simply sitting and collecting interest. My greater return should come from stocks, they are not surefire, but it is the largest payout option. The online savings account offers a larger (not by much) interest rate that is compounded. This is good for setting up savings accounts for my children. They are young which gives years for continuous deposits and for the interest to accumulate. While this strategy works for the long run of 10+ years, it does not cover much in terms of the next 2 years. A CD will be good for this as the money will sit until its maturity date. This will guarantee that a specific amount at the end of the 2-year term. Which, now that I think about it, will probably be less than what would come of the savings account with compounded interest. Finally, since I consider myself a bit of a risk taker, the stock market is where I would try to finalize my financial goals. I know that there is no guarantee so putting all of my money in is not an option, but I will put a good enough amount to where it will produce a good return. As the saying goes “To win big, you must bet big”.
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