Nothing Please Ignore

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Investment Proposal Casey Havenga Introduction A client who is 21 years old has approached me with R1 000 000 which they won in the lottery. I will split the money into three parts: R200 000, R200 000 and R600 000. One R200 000 I will invest in a Notice Deposit bank account; the other R200 000 will be invested in Unit Trust investments and the R600 000 will be invested long term in JSE’s top 40 companies. My aim as a broker is to ensure an average of 15% growth on my client’s money with minimum risk. I’ve broken up her money so that she will have a cash flow in case of emergencies and still get growth on her money. investment 1: Notice Deposit Account This is the most stable option for my client because there isn’t…show more content…
The investment is tax free after 5 years and any tax that is charged up to the 5 years is paid by your insurance company Recommendation I recommend that the client doesn’t withdraw any money unless she needs to and if the need arises that she takes from the bank account and not from her shares. I also recommend that she does not sell any of her shares unless one of the companies is showing signs of going bankrupt. More often than not the value of the shares will continue to grow. Growth of R200 000 in Notice Deposit Account if prime rate stays 9%: Unit trust growth (Money Market Fund): Possible worth at the end of 5 years: R200 000 x 53.54% +R200 000 = R307 080 I chose a money market account for unit trust because it’s a very stable account with low risk. So the client has a steady growth on her money with a very little chance of it dropping. If you would like to see more information on this account look at the label marked Unit Trust Growth with shares (Aggressive Fund) [pic] Possible worth after 5 years: R600 000 x 264.83% + R600 000 = R2 188 980 I chose the Aggressive fund for my client because she is young and the interest rates are very high so by the time she is finished with university and wants to pay her debts or wants to buy a house she’ll have enough money to do that with this fund. For more information on this account refer to the
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