It’s always good to start investing money at an early age, however, it’s a hard start. Many banks have improved interest rates as well as no opening fees to start a savings account. Stocks, such as health and technology are also currently going up. Billy should start by saving small amounts of money per week for two years and placing it in a savings account. He should also buy health and tech stocks, such as Johnson & Johnson (JNJ) and International Business Machines Corporation (IBM), and keep a diversified portfolio, along with buying bonds. Billy should start by saving $6 every week and put in a bank such as Synchrony Bank, which has an annual interest rate of 1.05% Since Billy is a lawn mower, he should be able to generate at least $6 …show more content…
Billy would still deposit $6 a week and about $24 a month. With the interest included, Billy would’ve saved about $2,020.49 in seven years, however this is risky because he could possibly lose a lot of money while investing in stocks. Billy could avoid speculative risks by not buying any fashion stocks and food stocks. Fashion is an unpredictable field, with the fads changing nearly every day and how people view the new products, as well as the popularity of the products. Companies like General Mills, Inc. (GIS), Hershey Company (HSY) and Kellogg Company (K) in the food industry are all going down. Billy should a diversified portfolio, but buy more health and technology stocks because they are at low prices and are more bullish. For example, IBM is at $149.25. The 52 week low is 116.9 and the 52 week high is 176.3. If Billy buys 10 shares, he should have at least a 2% (total purchase price ÷ money gained/loss x 100) expected return on the stocks. If Billy buys 10 shares of JNJ at $108.97, he would get at least 3% return. The 52 week low for JNJ is 81.79 and the 52 week high is 109.84. This shows that JNJ is closer to its high, so Billy would most likely make a dividend off of …show more content…
GE has a face value of $98.40 and the coupon is 0.042%, which is equivalent to $0.00042, which is no money, rounded to the nearest hundredths. The maturity of the bond is 5 years (5/17/2021), so Billy would get $500.00 back from the GE bond issuers. Billy would make a dividend of $8 by buying the bond at a lower price than the returned money. PEP has a face value of $99.60 and the coupon percentage is 0.467%, which is 0.00467 and 0.01 rounded to the nearest hundredths. The maturity is 2 years (04/30/2018), so Billy would get $200.02 back and make a dividend of
1. Consider the $50,000 excess cash. Assume that Gary invests the funds in one-year CD.
This is the case of James Wilson a graduate student who is doing his internship and a local mental health agency. Although, his intentions are good he obviously has forgotten some of things he learned in his ethics and legal course. As we proceed through the case we will look at some of the behaviors James exhibits and participates in, and what are some of the ethical and legal codes he has violated. Then consider what disciplinary actions he could face because of his carelessness at the mental health agency.
One year ago, you bought a $1000 face value, 6% annual coupon bond when it had 4 years left until maturity, and its yield-to-maturity was at 7%. Exactly one year later, the bond’s yield to maturity is now at 8.5%. What was your annual rate of return on the investment?
The first Hershey’s Chocolate Bar was produced in 1900, six years after the firm that would become The Hershey Company (“Hershey”) was founded by candy-manufacturer Milton S. Hershey.
Over the course of the previous and current semester I have had the opportunity to experiment with investing on a level that I have never been able to before. Using Stock Trak, I was able to try out various methods of investing that I normally would not have had the chance to do. Using the $500,000 dollars that Stock Trak starts you off with, I had the opportunity to invest in options, futures, high end mutual funds, and bonds. I have learned a bit through this experience that will benefit me for the rest of my life. Although it was not a perfect experience; and there was more I wish I would have gained, there is no doubt that I will benefit from this experience. For the rest of this paper, I will be discussing how I used Stock Trak, the things I would have changed, what I learned, and how I plan to apply this experience to the rest of my life.
Professor Mattison gave Tyler and Jessica $100,000 of fictional money to invest any way we wanted. With our $100,000 we initially bought T-Mobil, Sony, Nike, and Chipotle stock. We bought 519 shares of T-Mobil stock for $38.82 per share, 788 shares of Sony stock for $25.35, 27 shares of Nike stock for $110.85, and 27 shares of Chipotle stock for $110.85 per share. After we presented the second time Professor Mattison said to diversify our portfolio. We sold 519 shares of T-Mobil for $39.54 per share and 27 shares of Chipotle for 734.16 per share to buy some more diverse investments. Selling those investments gave us about $40,300 in cash. With that cash we agreed on buying $14,917.20 worth of the Vanguard Global Equity Fund, $4,247.68 worth
3. John had $30,000 to invest. He invested part of this money in bonds paying 12% annual simple interest and the rest of the money in a savings account giving 4% annual interest. At the end of the year, he received $2,400 as extra income. How much money did John place in each investment?
You are comparing saving $100 every month for a year vis-à-vis $1,200 at the beginning of the year. How much extra will you have at the end of the year by saving $ 1,200 at the beginning of the year instead of saving $100 each month at the end of each month. Use 6% interest rate.
The Hershey Company is famously known for being the biggest manufacturer of chocolates and confectionery products in USA, having hired over 15,000 employees worldwide and exporting their products to ninety different countries over the world. The Hershey Company has several popular brands, some of most notable ones being Hershey s Chocolate Bar, Kit Kat, Hershey s Kisses, Reese s, York Peppermint Pattie, Rolo and Krackle Bar. With the help of these brands, Hershey gained success and popularity making the company s net , worth over $4 billion dollars. Hershey s products include chocolates, confectioneries, food and beverage related products such as baking ingredients, toppings etc. The company lives by its mission statement,
Peter Lynch poses three important questions to the investor in order to self-evaluate their financial position as well as mental state before deciding to invest in the stock market: (1) Do I own a home? He advises that buying a house first is the best type of investment you can make as it, in the long-run, just as stocks, always appreciates in value. (2) Do I need the money now? Only invest money you can afford to lose and will not be needing in the near future. (3) Do I poses the personal qualities necessary to succeed in stocks? Some of the personal qualities Lynch deems necessary are lots of patience, ability to ignore the general panic, tolerance for pain, open mindedness, persistence, and common sense.
Investing in a domestic bank deposit at 8% interest ($500,000 x 1.08) would yield $540,000.
world write on topics that range from tried-and-true investment strategies to tomorrow’s new trends. Each book offers a unique perspective
Now, let us calculate what his investment style will amount to if he were to continue making the same investment choices until retirement. To start off, we can see that Joe is not a risky investor; he has only invested into individual accounts, certificate of deposits, and his 401k. In addition, he saves an average of 10% of each paycheck (which we will assume to be $5,000 annually based on a $50,000 median household income). As noted earlier, his primary objective is to retire on annual income of $50,000. We can assume then that his goal is to save approximately $1,250,000 .
Have you ever invested money in stocks or maybe received savings bonds as a gift? Those are just two different types of investments that could potentially help with future money plans. It is very smart to start investing money or looking at other ways to invest at a young age to prepare for the future. There are many different types of investments that individuals can use to achieve future savings and investment goals. According to www.fool.com, If you were to invest one hundred dollars as a fifteen-year-old young adult and then receive a ten percent investment rate every year on that initial investment, at the age of sixty-five years old you would turn that one hundred dollars into $1,083. Investing your money rather than saving or spending it is smarter and can help you with your future plans.