Your Recommendation
Objective:
Develop an investment portfolio based on risk.
How should risk determine stocks and mutual funds to invest in?
What factors determine whether investments are risky or safe?
The Situation:
You are a financial adviser.
A 25 year old customer would like to begin investing in stocks and bonds.
They will invest $500 per month and will be investing that amount for at least the next 25 years.
Assume that all of the money will be in stocks, mutual funds, ETFs, bonds, crypto.
The Challenge:
Create a poster with a recommendation to your customer how they should diversify their investments to minimize risk.
Include your assessment of how risky that particular investment is.
Include details of the company so your customers can understand the risk.
You must include at least:
5 stocks/individual companies (or more)
Include an image associated with the company. Print, or create your own
1 Mutual Fund (or more)
1 ETF (or more)
Discuss the ideas of diversification and risk. Be sure to include something that says there are no guarantees, but you have come up with these recommendations to minimize risk.
Explain what they should do with any dividends they earn. (include dividend yield for each)
Include your commentary on bonds, crypto and penny stocks, and if they should be a part of their investment.
Recommendation Spreadsheet - Copy this and use it to get your recommendation started.
Create a graph that shows the company name and either the dollar amount or percent for this security. Format so it looks amazing.
Print both the spreadsheet and the graph. Tape the spreadsheet to the back, and include the graph somewhere on the front for everyone to see.
Use this calculator to show them how much they will have at the end of 25 years. Use the return rate that we have dicussed for historical stock market returns. Show your client this information.