Reference no: EM132456481

Investment Planning Proposal

Imagine you are meeting with friends to discuss the importance of investments as part of a retirement plan.

Read the following summaries of the financial situation and goals of two of your friends:

Kathy

Kathy is a 28-year-old, single mother of twin boys. She has been working as a public relations media specialist for three years, having worked at the same company where she started out answering the phones. She has her B.A. in Communications and a student loan of $20,000 she has not yet begun to pay off. Her job pays $70,000 a year. She receive no financial support from the father of her twins. Her costs include paying for childcare, credit cards, and a mortgage. She is able to set aside between $200-325 a month in a savings account. Her financial goals are to pay off the remaining $1,000 of her credit card debt, and to begin contributing to a retirement plan. Her employer offers a 401k with a 3% match, and she is not yet enrolled in that plan.

Jackson

Jackson is a recently graduated 44-year-old, single man. He earned his B.S. in Criminal Justice and just recently started a job at the local police department earning $45,000 a year. Jackson pays child support for one child from a previous marriage. His student loans total $30,000, and he has no other debt at this time. He expects to have $200 a month to contribute toward his goals of owning a home and having a more secure retirement.

Choose one friend and write an APA-formatted, 3- to 4-page proposal advising a friend about investing for the future. The text of your proposal should be a minimum of 700 words. You may add any graphics or illustrations that support your proposal.

Address the following in your proposal:

· Why is investment planning important?

· How would you suggest your friend start retirement planning? What steps should he/she take to start?

· What investment strategy would you suggest? Why? (Note: Your strategy should explain how money could be invested in stocks, bonds, mutual funds or a mix of all.)

· Of what risks and rewards of investing should your friend be aware?

· How could your friend minimize the risks associated with investing risk?

· Provide two to three resources you would offer to your friend to continue learning more about investments and retirement planning and discuss how these can help.