Personal Investment Options

1
Personal Investment Options

• Team 1
• Organizers- Eric Tseng
• Techie- Kevin Curley
• Summarizers- Juan Cervantes
• Alex Camerino

2
Analysis Premise

• How to make the best personal investment to
  retire with more money, while analyzing the pros
  and cons of each investment scenario.

3
Parameters

• 25 years old
• 50,000 starting salary
• Working over 30 year period
• Salary increase of 5 a year
• After 15 years moves to 80,000 salary
• Invest 10 of salary per year
• Inflation rate of 3

4
Option 1Savings Bonds and CDs.

• Safe, low risk investment
• Guaranteed interest rate
• Limited flexibility
• Easier to predict future value
• Not affected by market fluctuations

5
Option 2Stocks and Mutual Funds

• Higher risks
• More flexibility
• Interest rate varies
• More potential for higher return
• Investments hit harder by recession
• Dividends paid regularly

6
Option 3Private Manager and Hedge Funds

• Hands off approach
• Improved rates of return
• Minimal risk with greater investment potential
• Require higher principal
• Less investment knowledge required

7
Plan of Action

• Research current bond and cd values
• Research stock market environment
• Contact private money managers
• Research details of hedge funds
• Organize 30 year plan