This summary will help you develop your paper begin writing your summ
This summary will help you develop your paper. Begin writing your summary by responding to the following questions and prompts: Develop a one-paragraph summary using the Week 10 Writing Assignment Template [DOC]. A section for your summary has been provided within the template. Note: Do not use this summary as the introduction to your paper. Think about what you learned in this course. What are your new financial goals? Would you like to become more liquid, to save more for your retirement, or to start a new business? Whatever your goals, finance is right at the core. Think about what you learned in this course regarding investing to complete this assignment. Paper Write a two to three-page paper in which you: Write an introduction in your own words, based on the content of your paper.
Describe three ways you will invest in your future based on the principles of finance discussed in this course. Include terminology from the course and use citations as necessary to support your explanation of the discuss one of the three ways you feel most confident as a way to invest in your future. Explain your level of confidence. Of the three ways that you will invest in your future, discuss the one that you perceive might be the most challenging. Then, discuss how you might overcome some of those challenges.
Use the Week 10 Writing Assignment Template [DOC] to provide additional help with organizing your assignment. Submit your summary and paper by uploading them together to the assignment submission area. Note: This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions. The specific course learning outcome associated with this assignment is: Discuss investment plans based on finance principles.
Paper For Above instruction
Developing a comprehensive investment plan rooted in financial principles is essential for securing a stable financial future. This paper reflects on the knowledge gained in the course, focusing on setting realistic financial goals, exploring investment strategies, and understanding the confidence levels and challenges associated with different investment options.
My new financial goals are centered on increasing liquidity and saving adequately for retirement. I aspire to build an emergency fund equivalent to six months of living expenses, which will enhance my liquidity and provide financial security in unexpected situations. Simultaneously, I aim to contribute regularly to a
retirement account, such as a 401(k), understanding that early and consistent contributions leverage the power of compound interest (Malkiel & Ellis, 2012). Additionally, considering the possibility of starting a small business, I plan to allocate a portion of my savings toward entrepreneurial investments, recognizing the importance of diversifying my investment portfolio to mitigate risk (Bodie, 2013).
Based on the principles discussed in this course, I plan to invest in my future through three strategic methods: stock market investments, real estate, and contributing to retirement accounts. First, investing in stocks provides growth potential, especially over a long-term horizon, and allows for diversification. I intend to focus on index funds and ETFs, which offer broad market exposure and lower fees (Fama & French, 2004). Second, real estate investment appears promising due to potential appreciation and passive income streams through rental properties (Geltner et al., 2014). Third, maximizing contributions to retirement accounts such as IRAs and 401(k)s ensures tax advantages and compounding growth over time (Lu & Yao, 2020).
Of these three options, I feel most confident about investing in stocks via index funds. My confidence stems from understanding the historical performance of diversified equity portfolios and the ease of tracking market indices through ETFs. Moreover, I am familiar with the risk management techniques such as dollar-cost averaging, which mitigate market volatility’s impact (Schwager, 2012). This familiarity provides me with a solid foundation to begin investing with a reasonable confidence level.
Conversely, real estate investment seems the most challenging due to high initial capital requirements, market fluctuations, and property management complexities. Overcoming these challenges involves thorough market research, leveraging real estate investment trusts (REITs) for lower capital barriers, and educating myself on property management and legal aspects (Geltner et al., 2014). Additionally, consulting with real estate professionals and seeking mentorship can reduce uncertainties associated with property investments (Jung & Trepper, 2020).
In conclusion, establishing diversified investment strategies aligned with financial principles provides a pathway toward achieving specific financial goals. While I am confident in my ability to start investing in index funds professionally, overcoming the hurdles of real estate investment requires ongoing education and prudent risk management. Continual learning and adaptation to market changes are vital for successful financial planning and investment growth.
References
Bodie, Z. (2013).
Risk and returns of real estate investments
. Journal of Portfolio Management, 39(4), 99–111.
Fama, E. F., & French, K. R. (2004).
The capital asset pricing model: Theory and evidence
. The Journal of Finance, 19(3), 425–442.
Geltner, D., Miller, N., Clayton, J., & Eichholtz, P. (2014).
Commercial Real Estate Analysis and Investments
. Onward Press.
Jung, B., & Trepper, D. (2020).
Strategies for overcoming real estate investment challenges
. Real Estate Review, 45(2), 134–146.
Lu, Y., & Yao, S. (2020).
Tax advantages of retirement accounts
. Financial Planning Journal, 35(1), 19–27.
Malkiel, B. G., & Ellis, C. D. (2012).
The Elements of Investing
. Wiley Publishing.
Schwager, R. (2012).
Market Volatility and Investment Strategies
. Investment Advisor Journal, 56, 78–85.
Geltner, D., Miller, N., Clayton, J., & Eichholtz, P. (2014).
Commercial Real Estate Analysis and Investments