Analysis Of Two Investment Strategies, One Conservative And One Aggressive

1429 Words Sep 1st, 2014 6 Pages
1.0 Introduction
In this report it will discuss and outline two investment strategies, one conservative and one aggressive. It will also evaluate her superannuation and the importance of super for young people and it will also recommendation to help the client meet her finical goals for the future.

2.0 Investment
After reviewing Melissa Bennet’s client profile, numerous financial indicators may be observed which are relevant when considering investment options. Firstly, Bennet receives a consistent wage, proving she is not a risk to loaning institutions and that she can make accurate predictions regarding her future investments. This signifies a level of financial stability rarely obtained by a 24 year old. Additionally, the bequeathment of $250 000 further improves her financial state. However, after noting her monthly expenditures, it is predicted that Bennet spends $52 521.60 each year on rent, food and bills. Considering her hopes to save for a trip to Europe and to purchase a two bedroom apartment in the inner-city region, it is vital that Bennet locks in a financial arrangement that enhances returns.
This in mind, two obvious possible investment options may be discussed. These include a term deposit and the purchase of shares. Both options carry defined positives and negatives that should be considered.
2.1 Conservative versus Aggressive Investment
Conservative investment options, such as term deposits, carry significantly lower risk than aggressive investments,…

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