Nobody downloaded yet

Money Management - Essay Example

Comments (0) Cite this document
The benefit may be having enough funds to take the first step towards a dream. My current commitment is to make a lump sum investment…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.5% of users find it useful
Money Management
Read TextPreview

Extract of sample "Money Management"

Download file to see previous pages Investing with exchange traded funds ETFs is an easy way to ensure diversification in any portfolio involving stock, bonds and commodities without having to invest in the individual shares, bonds and commodities themselves. They enable investors to access sectors that would not be available to individual investors (Morningstar 2014b). This takes some of the hassle out of investing.
I am very adventurous and I tend to have a liking for the sea. Therefore, my aim is to own a yacht within the next seven (7) years. In order to achieve this specific goal I will be making some medium to long term investments so that I can make a substantial deposit on a new yacht in five (5) to seven (7) years time. The yacht is expected to cost in the range of £300,000 to £500,000 by the time I get to the point where I am able to make a substantial down payment.
My risk tolerance is medium and so I am willing to take a moderate level of risk in order to achieve a favourable return on my investment. Costa (2011) indicates that the returns that I would achieve are proportional to the risk taken and so I expect moderate returns. My risk profile is consistent with a balanced profile. A balanced allocation has between 0% and 25% cash; 40% to 70% bonds; and 30% to 60% stocks (Costa 2011). This portfolio is characterised by limited risk; however, it can still obtain good returns because of the proportion of stocks that it contains. It is also consistent with the time horizon that I have in mind, which is five to seven years.
I have a total of £50,000 to invest and this will be invested in accordance with the guidelines provided in relation to a balanced risk profile (See Costa 2011). However, I would also like to include a commodity related ETF involving physical gold which is one of the best ways of maintaining asset value. The majority of my investment will take place through the use of exchange traded funds (ETFs). An ETF is an investment ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Money Management Essay Example | Topics and Well Written Essays - 3000 words”, n.d.)
Money Management Essay Example | Topics and Well Written Essays - 3000 words. Retrieved from
(Money Management Essay Example | Topics and Well Written Essays - 3000 Words)
Money Management Essay Example | Topics and Well Written Essays - 3000 Words.
“Money Management Essay Example | Topics and Well Written Essays - 3000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


Money Management - Portfolio of funds or ETF

...bonds from reputable firms (Madura, 2008, p.13). This trend led to the emergence of special funds which allowed small investors to pool funds and investment in a number of securities or stocks. These funds are managed by fund managers which became popular with huge companies like insurance firms and banks. However the costs of managing these funds were high and some investors looked for other options to invest. This led to the emergence of Exchange Traded Funds (ETFs), which allowed investors to put their money on investment funds to be traded on stock exchanges (Abner, 2010). ETF investment funds incorporate an array of assets such as stocks, commodities or bonds and...
11 Pages(2750 words)Essay

Money Management Finance and Accounting Assignment

...? Money Management Money may not be able to buy any mental happiness, yet it is a necessary instrument for everyone since it allows the exchange of material required for one’s everyday life. Hence, the management of money is also necessary such that the available funds may be optimally utilized or give sufficient outcomes as savings for the individual who might have invested the amount (Aldrow, vi). This report would discuss on a particular case as to how an individual may be able to utilize a saved amount of funds after he has reached his retirement, which approach may prove to be a better approach for the individual and which stock should he select to invest depending on different factors that need to be taken into consideration... ....
8 Pages(2000 words)Assignment

Money management

...October 22, Money Management Total number of words 1497 Table of Contents Part Introduction Life insurance option Comparison of both options Part 2 Share analysis Appendix 1 Table 1 – Life insurance offer Table 2 – Personally managed funds Table 3 – Comparison of both options Appendix 2 Table 4 – Company analysis References Introduction Retirement years are filled with uncertainties especially if the retiree has a medical condition. It therefore makes planning for retirement much more difficult. If I receive $500,000 when I retire then I have to invest it in some way in order to withstand the effects of inflation. There are many options available but some are very risky and at this time...
6 Pages(1500 words)Essay

Money Management Midterm-1

...?Money and Management Midterm By Finance and Accounting of Contents Contents PART I – Pension 4 LockheedMartin Corporation 5 Background information about the company 5 Financial Ratios of Lockheed Martin 5 Earnings per Share 5 Price Earnings Ratio 6 Price per Book 6 Price per Sales 6 Return on Equity 7 Payout Ratio 7 Price per Cash Flow 7 Dividend Yield 7 Altera Corporation 8 Background information about the Company 8 Financial Ratios of Altera Corporations 8 Earnings per Share 8 Price Earnings Ratio 8 Price per Book 9 Price per Sales 9 Return on Equity 9 Payout Ratio 9 Price per Cash Flow 9 Dividend Yield 10 Conclusion 10 List of References 11 PART I – Pension This section intends to carry out an...
6 Pages(1500 words)Essay

Money Management Final-1

...? Finance and Accounting Money Management Table of Contents Introduction 3 Analyzing Risk Profile 3 Investment Experience 4 Risk Tolerance 4 Investment Goals and Objectives 4 Investment Time Horizon 5 Liquidity 5 Age and Income 5 Analyzed: Moderate Risk Profile 5 Asset Allocation 6 Difference between Mutual Funds and Exchange Traded Funds (ETFs) 6 Benefits of Investing in Mutual Funds 7 Risk Management 9 Role and Influence of main actors in Financial Markets 10 Relationship between Macro-economic Forces and Financial Market 11 Financial Instrument: Risk and Benefit 12 Conclusion 13 Bibliography 15 Appendices 16 17 Introduction The initial point in investment strategy is individual risk...
12 Pages(3000 words)Essay

Money Management Final-1

...? MONEY MANAGEMENT FINAL Table of Contents Introduction 4 Risk Profile Analysis 4 Objectives and Asset Mix 5 Determining Time Frame of Investment 5 Money Management through ETF 5 Portfolio Selection 7 Asset Allocation 8 Equity Investment 9 BLDRS Europe 100 ADR Index (ADRU) 9 AdvisorShares WCMBNY Mln Fcsd GR ADR ETF (AADR) 11 Direxion Daily Small Cap Bull 3X Shares (TNA) 12 iPath DJ-UBS Cotton TR Sub-Idx ETN BAL 12 Bond Investment 13 AdvisorShares Peritus High Yield ETF HYLD  13 Franklin Templeton Investment Funds- Templeton Global Aggregate Bond Fund (FTAAEH1) 13 Conclusion and Recommendations 13 References 15 Introduction A portfolio is group of securities such as bonds,...
12 Pages(3000 words)Assignment

Money Management

...Lecturer: presented: Introduction Money management is the practice through which a person keeps focus of the manner inwhich money is spent. It is important in ensuring that money is spent wisely in order to avoid the problems of bankruptcy, debts and profligate spending. It involves developing a plan on how to spend the available money to satisfy all personal needs. It also involves strategizing on future spending, thereby enabling an individual to save money which will be effectively spent as a lump sum to purchase commodities that require huge sums of money. Through such plans, the person is capable of avoiding debts...
8 Pages(2000 words)Coursework

Money management

...October 22, Money Management Introduction Retirement years are filled with uncertainties especially if the retiree has a medical condition that needs frequent doctor. It therefore makes planning for retirement much more difficult. If I receive KD 500,000 when I retire then I have to invest it in some way in order to withstand the effects of inflation. There are many options available but some are very risky and at this time of my life I have to think about the certainty of my income. I have therefore decided to consider one of two options – a life insurance investment and a personally managed fund. Option 1 – Life Insurance Fund If I invest the KD 500,000 with a life insurance company...
6 Pages(1500 words)Essay

Money Management of Young People

...MONEY MANAGEMENT FOR COLLEGE Attending college Your experience in college has numerous possibilities. It is the first among many steps in your life that will facilitate your career goals. However, securing a tertiary education is an expensive endeavor that requires smart financial management skills. You may have to deal with enormous sums of money as well as smaller denominations. Regardless of the quantity, you need to manage your finances adequately enough to pursue your main objective, which is acquiring an education. Therefore, the main goal of this newsletter is to help college students become financially independent. When you keep your finances...
6 Pages(1500 words)Admission/Application Essay

Financial Basics: A Money-Management Guide for Students

...Financial Basics: A Money-Management Guide for Students. Most teens often get the first experience of managing finances when in college and financial mismanagement at this stage might have serious ramifications in the future. It starts with Jason’s story that is a typical college student assuming unprecedented debt burdens as a result of relaxed limits associated with student loans and credit cards which are easily obtained. The first chapter deals with debit-credit card issues. The author explains how the students are seduced by the credit cards which leave them to heavy debts. The book narrates the story of Jason and the journey with credit card and how they are lured to overspend....
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Money Management for FREE!

Contact Us