Analysis Of Two Investment Strategies, One Conservative And One Aggressive

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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…show more content…
When investing in a term deposit, the individual must invest a minimum of $5000. This sum of money can be kept in a term deposit for as little as 1 month or as long as 5 years. A term deposit has a low rate of risk, so the invested money is guaranteed to earn interest over a period of time. However, since it is a fixed rate, investment returns are likely to be minimal. This negative is counterbalanced by the absolute security of this investment contract. Returns will be comparable to those from non-fixed rates depending on the economic environment. Additionally, this investment is a suitable option for young people as it allows them to redraw the money after the maturity date. With the expenses that typically arise when starting a home or family, it is likely that the ability to access this fund after the investment has ceased would provide a major financial benefit. This money cannot be accessed throughout the investment period, ensuring that the sum cannot be spent. Interest on a term deposit is compounded every 4 weeks, 6 months or yearly, depending on the preference of the individual. The individual must also decide on a plan for interest returns, which can either be deposited into a personal bank account or added to the rem deposit sum. This latter option is financially preferable, as the larger the funds in the deposit, the greater the interest returns. 2.3 Aggressive Option - Shares

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