Wk 6 Investment Strategy
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Don M. Long Personal Investment Strategies Mr. Boubacar Vilane November 24, 2015
RUNNING HEAD: Strategies Long-2 Personal Investment Strategies As with the other subjects we have looked at in the course, investments must be researched and planned to provide the best outcome for each individual’s
current situation and future financial goals. Settling on an investment strategy which fits my goals and a monthly investment amount that fits within my budget will help me insure a secure financial future. Strategies The best course of action for my goals and financial situation is to work with my existing thrift savings plan is to rebalance yearly and diversify my investment within the plan. With close to ten years left before retirement, I feel comfortable with being a little more aggressive with my investments. I plan to move some of my money around to reflect investments in stocks, bonds, precious metal and cash with a twenty-five percent allocation to each (Jacob, 2012). This course of action fits best with my current financial situation and goals. When coupled with the annual rebalancing of investments, this strategy will provide a reliable avenue to make my money work for me. Buy-in and Pay out The current amount of monthly contribution to investments is ten percent of my monthly income, around $450 plus $150 from my employer for a total of $600. Total contribution during my last year (20) would be almost $1100. With these figures in mind and using the calculator found at TSP Center, I will have earned the following amounts over the next twenty years. Currently I am 45 years old; at age 50, I will have about $169,937, at 55, $332,801 and at 65, $963,037 (TSP Center, 2015). Not a bad return for a $245,000 investment. Now, I just need to figure out how to live on a million dollars for thirty or forty years.
RUNNING HEAD: Strategies Long-3 Conclusion
Investments must be researched and planned to provide the best outcome for each individual’s curr
ent situation and future financial goals. Having settled on an investment strategy which fits my goals and a monthly investment amount that falls within my budget I can ensure a secure future in retirement. Rebalancing, diversification and sticking to a financial plan are the keys that unlock success and a great future.
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RUNNING HEAD: Strategies Long-4 Reference Jacob. (27 February, 2012.) Harry Brownes Permanent Portfolio. Retrieved November 23, 2015 from http://www.consumerismcommentary.com/harry-brownes-permanent-portfolio/. TSP Center (2010). TSP Center Thrift Savings Plan Calculator.
Retrieved November 24, 2015 from http://tspcenter.com/calculator.php.
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