Question

pretend that you were a financial advisor at a bank you have three appointments today to talk to people about their investment .
you have to provide been providing with the profiles of the three people read the profiles

Foundations for College Mathematica Lesson 19, page 18 Profile 1: Jorge and Anita are 10 years from retirement have no children, and both have good jobs. They have apartment all their adult lives, and have $500 000 in savings Profile 2: John is a college student who has a part-time job that covers his living expenses and leaves him $150 per month to invest. . They rented an Profile 3: Agnes and Joe have just bought a house. They have three young children. They both have good incomes, but neither works for a company that has a pension plan. Total: 16 marks

then decide what kind of investment would be best for each. justify your decision

Answer 1

John and Anita, are very close to their retirement, so they cannot afford to invest in risky investment options. They are financially sound and they dont have any children for whom they could plan for estate planning. They can invest in low risk pension plan, $500,000 for 10 years, Through this pension plan they have secured their post retirement non-stop income flow.

Profile 2: John is a college student, and he has just started to earn through part time earnings. With this $150 to spare to invest, John can take higher risk. He can invest in highly high rewarding and risky investment. John can invest in equity investments.

Profile 3: Agnes and Joe have recently purchased a house, and they have three children. They are in their mid age, hence they cant go for higher risk products. Since their income is good enough, but they dont have any pension plan. With the income surplus, they can invest in child education plan for the three children, and also a portion of their surplus income should be invested in pension plan.