Investment Portfolio Paper
For this assignment, you will be creating an investment portfolio allocating $100,000 in funds you won in a hypothetical lottery (see the scenario below). An investment portfolio is a collection of assets and can include investments like stocks, bonds, mutual funds, and exchange-traded funds. Two of the most important things to consider when creating a portfolio are your diversification strategy and personal risk tolerance.
For this week’s assignment, you will be further developing your investment portfolio that you started in Week 2. You will also need to create and include a graphic (e.g., table, chart) that illustrates your dollar or percent allocation of the $100,000 investment funds.
Scenario: Imagine you have just won $100,000 in a lottery. You want to invest this money wisely so it can grow over time and help you achieve your overall investment goals.
Prior to beginning work on this assignment,
- Read      Chapter 13 of your textbook and consider reviewing the chapters covered in the previous weeks of this course.
- Review your Week 2 Assignment and any instructor feedback given on that assignment.
- Read How to Build an Investment PortfolioLinks to an external site..
- Create a graphic (e.g., pie chart, table) that illustrates your dollar or percent allocation of investment funds. For help creating and inserting this      graphic into your paper, consider reviewing these resources:
In your paper, include:
Financial Situation and Goals
- Describe your current financial situation at a high level.
- Consider discussing your current and future income potential, current debt, Â Â Â Â Â Â current investments, and anything else significant that can impact your investment strategy.
- Review what you submitted for your Week 2 Assignment and incorporate any instructor feedback provided.
- Create at least two investment goals for yourself that are SMART (specific, Â Â Â Â Â measurable, attainable, realistic, and time-bound).
- Review what you submitted for your Week 2 Assignment and incorporate any instructor feedback provided.
Investment Types and Rationale
- Identify at least three major types of investments you would invest in that align with your goals.
- Explain your rationale for why you chose those three specific investment types, Â Â Â Â Â including how it aligns with your SMART goals or how it supports your overall diversification strategy.
Investment Allocation
- Explain how you would allocate the $100,000 to invest in the three investment types (e.g., $50,000 to several stocks, $40,000 to bonds, and $10,000 to mutual funds).
- Include a graphic (e.g., pie chart, table, etc.) that illustrates your dollar or percent allocation of investment funds.
Financial Returns and Risks
- Discuss what financial return you estimate the investment portfolio to deliver 5 Â Â Â Â Â years from now using data and calculations. In other words, how much will the portfolio be worth 5 years from now?
- Be sure to show and. Links to an external site.
- Explain two key assumptions you used to arrive at the estimated financial return 5 Â Â Â Â Â years from now.
- Consider using historical or forecasted data to support the estimated amount.
- Discuss one potential risk to your overall portfolio to achieve your desired return.
Portfolio Monitoring
- Explain the importance of monitoring your investment portfolio routinely.
Tip: Consider using the bold headings above as level headings to help organize your paper. For help with level headings, review the “Level Heading†section on the APA Style ElementsLinks to an external site. guide.
The Investment Portfolio paper
- Must be six to eight double-spaced pages in length (not including title and references pages) and formatted according to APA      StyleLinks to an external site. as outlined in the Writing      Center’s APA Formatting for Microsoft WordLinks to external site.
- Must      include a separate title page with the following:
- Title       of the paper in bold font
- Space should appear between the title and the rest of the information on the title page.
- Student’s       name
- Name       of institution (The University of Arizona Global Campus)
- Course       name and number
- Instructor’s       name
- Due       date
- Must include one graphic (e.g., table or chart). For help with including this figures, review the Tables, Images, & AppendicesLinks to an external site.
- Must utilize academic voice. See the Academic Voice links to an external site. resource for additional guidance.
- Must use at least two scholarly, peer-reviewed or credible sources in addition to the course text. Wikipedia and Investopedia are examples of sources that are NOT acceptable for this assignment.
- Must      document any information used from sources in APA Style as outlined in the      Writing Center’s APA: Citing Within Your PaperLinks to an external site.
- Must      include a separate references page that is formatted according to APA      Style as outlined in the Writing Center. See the APA: Formatting Your References ListLinks to an external site. resource in the Writing Center for specifications.
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Investment Analysis
Kevin Sessions
University of Arizona Global Campus
BUS 405 Principles of Investments
Mark Stricklett
Mar 20, 2023
Investment Analysis
If I won $100,000 in a lottery, I would be excited at the opportunity to invest it wisely and grow my wealth over time. However, my current financial situation could be more pleasing, and I have a substantial debt that I need to pay off. I am struggling to maintain the interest payments on the debt. My income potential is high and my work stability is certain, long-term financial planning is challenging due to my lack of dollar for dollar accountability utilizing a zero based budget.
In terms of current investments, I do not have any significant investments aside from a traditional 401k and some savings that I accumulated over the past 23 years. A lottery win would provide me with a substantial windfall, and I would like to invest it prudently to help protect my financial future. Considering my current financial status, my top two investing priorities would be to pay off my mortgage and save more for retirement. My mortgage is close to $340,000, so it’s a sizable burden that I want to pay off as quickly as possible. The interest I pay on my mortgage would be lowered, and long-term savings would be realized if I used any of my lotto winnings toward paying it off.
In addition, I would like to save more for retirement, as I am only contributing five percent towards a retirement plan, and my future is fairly-certain regarding employment. When the time comes for retirement, I can rest easy knowing I have enough money for my needs. Real estate is one type of investment that I consider as part of my investment plan. Real estate investment has a long history of popularity due to its potential for reliable returns and sustained growth (Waldron, 2018). As someone in my financial condition, I know firsthand the importance of having a stable feeling of security, which can be provided by owning property.
Real estate is a significant investment decision for many reasons. First, it has the potential to bring in a regular stream of cash through rent. Real estate also has a history of steady price increases that can add up to substantial profits over time. Furthermore, real estate ownership can positively impact my tax return through deductions for mortgage interest and property taxes.
In terms of stocks, I would consider investing in, Apple, Amazon, PayPal Holdings, Diageo plc, and EOG Resources Inc. These corporations have proven records of success and are leaders in their respective fields.
Apple Inc. is a multi-trillion-dollar company, making it one of the most valuable companies in the world. The company is well-known in the market for its lo
3/30/23, 6:39 PM https://au.waypointoutcomes.com/assessment/34037/preview
https://au.waypointoutcomes.com/assessment/34037/preview 1/4
Description:
Total Possible Score: 30.00
Distinguished – Thoroughly describes the current financial situation at a high level.
Proficient – Describes the current financial situation at a high level. Minor details are missing.
Basic – Minimally describes the current financial situation at a high level. Relevant details are missing.
Below Expectations – Attempts to describe the current financial situation at a high level; however, significant details are missing.
Non-Performance – The description of the current financial situation at a high level is either nonexistent or lacks the components
described in the assignment instructions.
Distinguished – Creates at least two clear and accurate personal investment goals that are SMART.
Proficient – Creates at least two personal investment goals that are SMART. Minor details are slightly unclear or inaccurate.
Basic – Creates at least one personal investment goal that is SMART. Relevant details are unclear and/or inaccurate.
Below Expectations – Attempts to create at least one personal investment goal that is SMART; however, significant details are
unclear and inaccurate.
Non-Performance – The creation of at least two personal investment goals that are SMART is either nonexistent or lacks the
components described in the assignment instructions.
Distinguished – Clearly and accurately identifies at least three major types of investments to invest in aligning with goals.
Proficient – Identifies at least three major types of investments to invest in aligning with goals. Minor details are slightly unclear or
inaccurate.
Basic – Vaguely identifies at least three major types of investments to invest in aligning with goals. Minor details are unclear
and/or inaccurate.
Below Expectations – Attempts to identify at least three major types of investments to invest in aligning with goals; however,
significant details are unclear and inaccurate.
Non-Performance – The identification of at least three major types of investments to invest in aligning with goals is either
nonexistent or lacks the components described in the assignment instructions.
Distinguished – Thoroughly explains the rationale for why the three specific investment types were chosen, including how it aligns
with SMART goals or how it supports the overall diversification strategy.
Proficient – Explains the rationale for why the three specific investment types were chosen, including how it aligns with SMART
goals or how it supports the overall diversification strategy. The explanation is slightly underdeveloped.
Basic – Minimally explains the rationale for why the three specific investment types were chosen, includin
