cf week 10 writing assignment Sera Hostetter
doc
keyboard_arrow_up
School
Texas A&M University, Kingsville *
*We aren’t endorsed by this school
Course
5315
Subject
Finance
Date
Nov 24, 2024
Type
doc
Pages
6
Uploaded by HighnessValor8027
Investing in My Future
By
FIN100: Principles of Finance
Dr. Cecily Anthony
June 13, 2021
Summary
Financial principles are essential for everyone, both in personal and professional
life. This course has shed light on the opportunities that investing in the stock market
could provide. I am challenged to learn more about the stock market and understand how
I can invest and the terms of returns. My new financial goals include saving before
spending. I have not taken this seriously, but I now know that it is essential to save before
you spend because the accumulated, saved money can be used to make lucrative
investments. I want to be more liquid because this will not only mean that I have a variety
of assets, but it will also mean that I have a source of funds in case of emergencies.
Saving for retirement and starting a new business are also part of my goals for the future.
2
Investing in My Future
Introduction
Investing in my future is something that I always think about. At an old age, I
would like to live a comfortable life. Hence, my financial choices in the present time are
crucial because if I do not make the right choices, I might end up not living the life I
want. Many people usually wait until they are in their late 30s to begin thinking about
investment and retirement (Berrospi, 2020). However, this is not always the best option
because a solid financial presence is built over time. The sooner you identify
opportunities for financial growth, the higher the chances are of financial freedom (SEC,
n.d.). I have gathered enough financial knowledge to determine how I will invest in my
future and identified the challenges I expect with my investment. These are goals that I
need to work on from now so that I can enjoy the returns at a future date.
Three (3) Ways I will Invest in My Future
The three ways I will invest in my future include stock market education, tax
saving, and emergency saving. One of the most crucial things that I have learned from
this course is the stock market. Before this course, I was interested in the market, but I
was always too scared to consider investing based on other people’s experiences of
losses. Continuous stock market education will enable me to learn more about the market
and have confidence in investing (Berrospi, 2020
)
. Hence, even when the stock market
experiences a dip, I will make informed decisions and continue my investments rather
than quitting. Investing in the stock market as early as now will give me the discipline
and commitment of a long-term investor and contribute to my successful financial life in
the future (Berrospi, 2020).
3
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
I will also invest in my future through tax savings. This is an area I feel that most
people overlook, but it is possible to optimize my taxes to reduce my tax bill. I can seek
the advice of an accountant on the best way to do this. A reduced tax bill means more
income, allowing me to save more (Berrospi, 2020). The third way I will invest in my
future is by setting up an emergency fund. People experience financial hurdles because
they use their personal savings to cover emergencies such as medical emergencies (SEC,
n.d.). By setting up an accessible emergency fund, I will ensure that I have available
resources in case of emergencies. Therefore, I will not need to use my personal savings,
which might land me in a bad financial position.
My Confidence Concerning Investing in My Future
I feel most confident in tax saving. Optimizing my taxes is something that will
come at no risk and that I can have continuous control over. Also, if I seek the advice of
an accountant or tax advisor, I am likely to be successful in optimizing my taxes, thus
reducing my tax bill. This will increase my net income, and I can use the surplus funds
for investments and savings. Hence, my confidence in tax saving is high as it comes with
less risk and is more controllable.
Challenges with Investing in My Future
Of the three ways I will invest in my future, I perceive investing in the stock
market to be the most challenging. There is a lot of information regarding the stock
market, so it might be challenging to find the right source with truthful information
(Beattie, 2020). I can overcome this challenge by getting a mentor who is already
investing in the market to guide me on the sources of information I should use. Also, as a
new investor, I am likely to make the wrong choices or get overcome by greed when the
4
market is doing too well. I can overcome this challenge by setting an investment plan and
sticking to it. When the market changes, I can evaluate my investments and decide which
stocks to hold without making a rushed and emotionally driven decision (Beattie, 2020).
Conclusion
While it might sound easy on paper, investing in the future can be a long and
challenging process. Hence, it is crucial to set clear goals and draw out a path for
achieving these goals. I will use the financial principles I have learned from this course to
make informed decisions, and I look forward to a fruitful future, especially as a stock
market investor.
5
Sources
(3 sources)
SEC. (n.d.).
Ten things to consider before you make investing
decisions
.
https://www.sec.gov/investor/pubs/tenthingstoconsider.htm
Beattie, A. (2020, September 7).
The challenges of investing in a modern world
.
Investopedia.
https://www.investopedia.com/articles/basics/12/challenges-
investing-modern-world.asp
Berrospi, G. (2020, September 24).
Five Ways To Invest In Your Future Before You Turn
30
. Forbes.
https://www.forbes.com/sites/forbesfinancecouncil/2020/09/24/five-
ways-to-invest-in-your-future-before-you-turn-30/?sh=6593473329c4
6
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Documents
Related Questions
Reflection. Going back to our first problem, it is time to review our answers. You can now decide correctly after learning experiences.
Scenario 1.Your grandparents gave you P 175,000.00 on your 16th birthday. You wereinstructed to invest the money so that the earnings can be used to pay for yourtuition fee in college. Having heard about the risks and rewards of the stockmarket from your parents, you become interested in buying stocks in a particularcompany. Below are the options given to you by your parents:Option1: Company ABC's selling stock is P 1,500.00 per share that will have adividend of P 200.00 per year. The stock can be sold after two years at P2,000.00and the market requires a rate of return of 15%.Option2: Company XYZ's selling stock is P 1,000.00 per share that will have adividend of P 180.00 per year. The stock can be sold after two years at P2,000.00and the market requires a rate of return of 7%.
In which company will you invest your money? why?
Scenario 2.Suppose…
arrow_forward
What is true about the way you should approach financial goals across different stages of your life?
A.As you progress through life, your values and financial possibilities will gradually change, which leads to an evolution of your financial goals over time.
b. Most people tend to make more money as they grow older and more experienced. After a certain point in your life you should have enough money to meet all of your financial goals, at which point you will no longer need to concern yourself with long-term goals.
c. You need to be consistent and determined when it comes to financial goals. The financial goals you make as a young adult should stay in place for the rest of your life.
d. Failure to meet a financial goal is a sign of personal weakness, so you should never alter a goal until you have completed it exactly as you imagined it
arrow_forward
if you were to picture yourself 10 years from now in a profession of your own choice how would you study personal finance help you contribute more to your field of expertiseif you were to picture yourself 10 years from now in a profession of your own choice how would you study personal finance help you contribute more to your field of expertise
arrow_forward
Monique Gonzales just graduated and was hired by a new cybersecurity firm in Colorado. She needs to set up her retirement plan portfolio, Monique has completed the
following payoff table for different investment options and estimated the potential profits that could be realized in one month. Monique can use the Hurwicz Criterion
strategy to make her decision.
Alternatives
Answer
Mutual Fund
Stock Market
CDs ➤
Bonds
Payoff Table
Good Economy
900
5,500
1,800
550
Step 1 of 2: What should Monique's decision be using the Hurwicz Criterion strategy and an à = 0.55?
O Mutual Fund
OOO
State of Nature
Fair Economy Poor Economy
O Stock Market
O CDs
650
4,900
880
440
O Bonds
440
3,100
630
165
Tables
Keypad
Keyboard Shortcuts
arrow_forward
Please show work.
arrow_forward
the concept "pay yourself first". With this in mind, what is your advice to someone on paying off credit card debt and investing for their retirement? Do you feel as though they should pay off all credit card debt before investing for their retirement or is it best to start investing for retirement as soon as possible? Why? * 350 word minimum
arrow_forward
Hi good morning the previous questions have been completed by you all.
Please answer question 6 & 7 after reading the scenario thank you. Question at the end
Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum.
She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes…
arrow_forward
Please answer question 8 after reading the scenario thank you. Question at the endStephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum. She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free. Stephanie's research has…
arrow_forward
Please complete without using excel
arrow_forward
Monique Gonzales just graduated and was hired by a new cybersecurity firm in Colorado. She needs to set up her retirement plan portfolio. Monique has completed the following payoff table for different investment options and estimated the potential profits that could be realized in one month. Monique can use the Hurwicz Criterion strategy to make her decision.Payoff Table
State of Nature
Alternatives
Good Economy
Fair Economy
Poor Economy
Mutual Fund
1,0001,000
650650
270270
Stock Market
6,5006,500
4,7004,700
3,3003,300
CDs
1,5001,500
850850
710710
Bonds
650650
270270
205205
Step 2 of 2:
What is Monique’s potential payoff based on the the Hurwicz Criterion strategy and an α=0.35α=0.35?
arrow_forward
Acting as a financial adviser one of your duties is to create a balance of stocks and bonds that are tailored to the risk
tolerance of your client. This means, some people want riskier balance with the goal of making more money, while others
will take a lower risk to be safer with their investments.
Your client has informed you that they have a desired average risk of 3.672 and have $7758.69 to invest in your suggested
stocks and bonds. They also want triple the number of shares of MAT compared to BUS. You have selected:
Stock MAT which has a risk of 3.2 and costs $36.74 per share.
Stock BUS which has a risk of 8 and costs $46.35 per share.
Bond SAFE which has a risk of 1.6 and a cost of $37.8 per share.
You have determined you should buy
shares of MAT,
shares of BUS, and
shares of SAFE.
arrow_forward
Please answer question 4 & 5 after reading the scenario thank you. Question at the end
Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum.
She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free. Stephanie’s research…
arrow_forward
Question from Business Math Course:
1) After reviewing the CPI inflation calculator at inflationdata.com, Hanna Lind realized the importance of creating an investment plan for her future. She would need $10,773.00 in 2018 to have the same purchasing power her $9,100 (stored in a fireproof safe in her home since 2000) had when she put it there. To protect her savings against further inflation and to help her prepare for a healthy financial future, Hanna deposits her $9,100 in an investment account in 2018 earning 6% interest compounded quarterly. How much will Hanna have in her account in 2028? (Use attached Table provided.)
arrow_forward
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working!
arrow_forward
Please answer question 2 & 3 after reading the scenario thank you. Question at the end
Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum.
She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free. Stephanie’s research…
arrow_forward
STRATEGY 2: SAVINGS LATER PLAN
Assume that you are 22 years old but decide to wait before saving for retirement. You decide to start saving later when you are 42 years old. As a result, you start saving on January 1, 2042. You plan to retire on December 31, 2064, when you are 64 years old. There are 23 years from the time you started investing (saving) until you retire. When you start investing in 2042, you have no previous or other retirement savings. Assume there are 365 days in each year from 2022 to 2064. (Ignore leap years). Assume that taxes will not affect any of the amounts or your savings.
You invest $350 at the end of each month into a retirement account paying 8.75% compounded monthly for 15 years starting on January 1, 2042. After 15 years, you do not make any more payments or withdrawals and leave the money in the retirement account until retirement. Show all work and answer the following questions:
Assuming no withdrawals or additional payments were made, how much…
arrow_forward
IM
00
96
%24
LLI
3
DECISION TIME – LUMP SUM OR PAYMENTS
TAT
Would you rather take a lump sum of $372 million or 30 annual payments of $25
million if the current interest rate is 6%?
• Use the present value equation to calculate the present value of the $750 million in 30 annual
installments, given the interest rate of 6% to answer this question.
= Ad
(? + I) I=}
91
6)
12
A
11)
114
prt sc
144
delete
home
end
an 6d
4.
->
backspace
lock
home
H.
enter
pause
1 shift
pue
alt
ctrl
SU
arrow_forward
Financial planners (and engineering economists) unanimously encourage people to seek out the highest rate of return possible within
their personal level of risk tolerance. To illustrate this point, they frequently produce a table similar to the one below. Fill in the blank
cells in this table assuming that your goal is to have $1,050,000on your 65th birthday and that deposits start on your 26th birthday
and continue annually in the same amount on each birthday up to and including your 65th birthday.
Interest Rate
Earned
Amount of
Required Annual Deposit
4%/year
$
5%/year $
6%/year $
7%/year S
8%/year $
9%/year $
arrow_forward
Assume that you were given $100,000 to invest in financial assets, discuss the following:
Explain what your investment portfolio would look like.
Share what you believe is your risk tolerance
arrow_forward
1. Identify at least 3 personal goals using the SMART guidelines. Financial goals should be specific , measurable, have a definite timeframe, relevant, and imply the action to be taken. Your goals can be short term (less than a year, up to years), mid term (2-5 years), or long term (>5 years).
2. Identify your values and beliefs associated with money, write brief paragraph that identifies your values and belief about money.
3. Research 3 online financial tools or apps that you might use. These might be for budgeting, saving, shopping, coupons etc. describe the app or tool and whether you think you would use it or not. If you are already using online tools or apps, you can explain what you like or don't like about them.
arrow_forward
Solve step by step using excel: Upon starting your new job after college, you've been confronted with selecting
the investments for your 401(k) retirement plan. You have four choices for investing your money: A money
market fund that has historically returned about 1% per year. A long-term bond fund that has earned an
average annual return of 4.5%. A conservative common-stock fund that has earned 6.5% per year. An
aggressive common-stock fund that has earned 9.0% per year. If you were to contribute $5,500 per year for the
next 35 years, how much would you accumulate in each of the above funds? Now, change your worksheet so
that it allows for less than annual investments (monthly, biweekly, etc.). The annual investment will be the same,
but it will be made in smaller, more frequent, amounts. Set up a scenario analysis that shows your accumulated
value in each fund if you were to invest quarterly, monthly, biweekly, and weekly. Create a scenario summary of
your results. What relationship…
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Related Questions
- Reflection. Going back to our first problem, it is time to review our answers. You can now decide correctly after learning experiences. Scenario 1.Your grandparents gave you P 175,000.00 on your 16th birthday. You wereinstructed to invest the money so that the earnings can be used to pay for yourtuition fee in college. Having heard about the risks and rewards of the stockmarket from your parents, you become interested in buying stocks in a particularcompany. Below are the options given to you by your parents:Option1: Company ABC's selling stock is P 1,500.00 per share that will have adividend of P 200.00 per year. The stock can be sold after two years at P2,000.00and the market requires a rate of return of 15%.Option2: Company XYZ's selling stock is P 1,000.00 per share that will have adividend of P 180.00 per year. The stock can be sold after two years at P2,000.00and the market requires a rate of return of 7%. In which company will you invest your money? why? Scenario 2.Suppose…arrow_forwardWhat is true about the way you should approach financial goals across different stages of your life? A.As you progress through life, your values and financial possibilities will gradually change, which leads to an evolution of your financial goals over time. b. Most people tend to make more money as they grow older and more experienced. After a certain point in your life you should have enough money to meet all of your financial goals, at which point you will no longer need to concern yourself with long-term goals. c. You need to be consistent and determined when it comes to financial goals. The financial goals you make as a young adult should stay in place for the rest of your life. d. Failure to meet a financial goal is a sign of personal weakness, so you should never alter a goal until you have completed it exactly as you imagined itarrow_forwardif you were to picture yourself 10 years from now in a profession of your own choice how would you study personal finance help you contribute more to your field of expertiseif you were to picture yourself 10 years from now in a profession of your own choice how would you study personal finance help you contribute more to your field of expertisearrow_forward
- Monique Gonzales just graduated and was hired by a new cybersecurity firm in Colorado. She needs to set up her retirement plan portfolio, Monique has completed the following payoff table for different investment options and estimated the potential profits that could be realized in one month. Monique can use the Hurwicz Criterion strategy to make her decision. Alternatives Answer Mutual Fund Stock Market CDs ➤ Bonds Payoff Table Good Economy 900 5,500 1,800 550 Step 1 of 2: What should Monique's decision be using the Hurwicz Criterion strategy and an à = 0.55? O Mutual Fund OOO State of Nature Fair Economy Poor Economy O Stock Market O CDs 650 4,900 880 440 O Bonds 440 3,100 630 165 Tables Keypad Keyboard Shortcutsarrow_forwardPlease show work.arrow_forwardthe concept "pay yourself first". With this in mind, what is your advice to someone on paying off credit card debt and investing for their retirement? Do you feel as though they should pay off all credit card debt before investing for their retirement or is it best to start investing for retirement as soon as possible? Why? * 350 word minimumarrow_forward
- Hi good morning the previous questions have been completed by you all. Please answer question 6 & 7 after reading the scenario thank you. Question at the end Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum. She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes…arrow_forwardPlease answer question 8 after reading the scenario thank you. Question at the endStephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum. She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free. Stephanie's research has…arrow_forwardPlease complete without using excelarrow_forward
- Monique Gonzales just graduated and was hired by a new cybersecurity firm in Colorado. She needs to set up her retirement plan portfolio. Monique has completed the following payoff table for different investment options and estimated the potential profits that could be realized in one month. Monique can use the Hurwicz Criterion strategy to make her decision.Payoff Table State of Nature Alternatives Good Economy Fair Economy Poor Economy Mutual Fund 1,0001,000 650650 270270 Stock Market 6,5006,500 4,7004,700 3,3003,300 CDs 1,5001,500 850850 710710 Bonds 650650 270270 205205 Step 2 of 2: What is Monique’s potential payoff based on the the Hurwicz Criterion strategy and an α=0.35α=0.35?arrow_forwardActing as a financial adviser one of your duties is to create a balance of stocks and bonds that are tailored to the risk tolerance of your client. This means, some people want riskier balance with the goal of making more money, while others will take a lower risk to be safer with their investments. Your client has informed you that they have a desired average risk of 3.672 and have $7758.69 to invest in your suggested stocks and bonds. They also want triple the number of shares of MAT compared to BUS. You have selected: Stock MAT which has a risk of 3.2 and costs $36.74 per share. Stock BUS which has a risk of 8 and costs $46.35 per share. Bond SAFE which has a risk of 1.6 and a cost of $37.8 per share. You have determined you should buy shares of MAT, shares of BUS, and shares of SAFE.arrow_forwardPlease answer question 4 & 5 after reading the scenario thank you. Question at the end Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation successfully. She is a fresh finance graduate and is excited to invest some money in the capital market, for which she intends to use the gifted sum of $50,000. However, instead of committing this money to the market immediately, she decides to wait for some time, work in the field and acquire some experience before proceeding with her intended investment. She thus contemplates an extremely conservative investment in a portfolio of stocks and bonds, at the start of year 5 from now. For now, she will leave the $50,000 in a fixed deposit with the bank which promises an interest rate of 6% per annum. She will require a return of at least 9% on her stock investments and 4% on bond investments. Stephanie would have to pay 25% taxes on any interest income. Dividends will be tax-free. Stephanie’s research…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning