Nobody downloaded yet

Investment Clubs Options P4DB - Essay Example

Comments (0) Cite this document
Summary
Very few people in this world do not want to get rich. A few odd exceptions may be Franciscan monks or individuals given to addictions. Yet, the problem is that a majority of the people have to be satisfied with a more or less fixed monthly income. Moreover, there are only a few who manage to resist the temptations of gross consumerism and are able to save money…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.9% of users find it useful
Investment Clubs Options P4DB
Read TextPreview

Extract of sample "Investment Clubs Options P4DB"

Download file to see previous pages Still, this does not mean that a person should give up on the idea or desire of getting rich. 'Investing' is the option that allows a person to get affluent, provided one is willing to take intelligent and calculated risks.
The second reason one must invest is that human body and mind deteriorate over time and so does the value of saved money. After having worked very hard in the youth, everyone desires to enjoy a happy and secure retired life. The problem is that the money saved by a person over time loses its worth owing to inflation (Orman, 2000). Hence, if a person has saved $ 100 one year and the rate of inflation is 5 percent, the next year that saved $ 100 will be able to purchase only $ 95 worth of goods and services. Now, imagine where one's savings will end, if one chooses to be a sitting duck before the vagaries of inflation. Hence, to make one's savings inflation proof, one ought to invest. Investment divests your savings of their laziness and makes your money work for you. Investing means making one's hard-earned money appreciate and generate income over time.
1. Before investing, an individual must be aware of one's short-term and long-term needs and requirements. Caring for short-term needs means making investments that can easily be liquidated. Such investments usually carry low returns. Providing for long-term needs means making investments that are more or less fixed over a specific period and yield high returns. One's genuine needs ought to define one's investment decisions. Therefore, if one is planning a baby next year, one will definitely have to pay the hospital bills and bear the other attached expenditures. In such a scenario, getting all one's savings entrapped in long-term investments is not wise. On the contrary, if one has young children and wants to provide for their college and university education, long term investments definitely make sense.
2. Always look forward to diversifying one's investments. Diversification means not risking everything on one endeavor. The entire motivation behind investing is the willingness of a person to take risk to get high returns. Hence, the magnitude of risk while investing is usually inversely proportional to the range of diversification (Markowitz, 1991). The more one diversify one's investments, the more is one insulated against risk. Therefore, it is always wiser to diversify investments among instruments like bonds, stocks, real estate, metals and mutual funds.
3. The investment and diversification strategy of an individual needs to be planned while taking into consideration one's age and the time left in one's retirement (Markowitz, 1991). While one is young, one can definitely afford to invest in high risk instruments in the expectation of getting good returns and optimal capital appreciation. However, ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Investment Clubs Options P4DB Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Investment Clubs Options P4DB Essay Example | Topics and Well Written Essays - 750 words. Retrieved from https://studentshare.org/miscellaneous/1527891-investment-clubs-options-p4db
(Investment Clubs Options P4DB Essay Example | Topics and Well Written Essays - 750 Words)
Investment Clubs Options P4DB Essay Example | Topics and Well Written Essays - 750 Words. https://studentshare.org/miscellaneous/1527891-investment-clubs-options-p4db.
“Investment Clubs Options P4DB Essay Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/miscellaneous/1527891-investment-clubs-options-p4db.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Investment Clubs Options P4DB

Obesity and health clubs

...concerns and the media’s encouragement to live a better lifestyle are influences persuading consumers to join health clubs. • Better technology is available, i.e. better and more divers exercise machines. Health clubs can also provide entertainment via media such as television and music. • As health club activities occur indoors, weather conditions are not a concern; therefore, health clubs are year-round rather than seasonal. • The variety of facilities and activities available at health clubs increase the chances that there will be something for everyone. Weaknesses • Obesity concerns have led the government to invest in public health...
6 Pages(1500 words)Essay

Strategic Options

...cost: Low cost is selected as one of the criteria to compete well against other major competitors. This is particularly important for products of the company that are displayed in other supermarkets, which have started producing their own brands. With low cost criteria, chances are that customers will still prefer products from Eurofreeze to that from other competitors. Scoring Matrix Based on the criteria and options given, the scoring matrix below is developed for further selection of one of the options for Eurofreeze to build on. CRITERIA Criteria 1: Growth and Investment Criteria 2: Brand equity Criteria 3: Value adding Criteria 4: High Return Criteria 5: low cost...
6 Pages(1500 words)Essay

Investment Options

...Distribution of Expected Outcomes for a $40 investment 4. Calculate the three amigos' proceeds from selling the December 40 puts on 10,000 shares. Each option is 100 shares so that's writing the December 40 puts 100 times. According to their estimates, the rise in stock price is $2.50. Calculating the proceeds Proceeds = $2.50 x 100 share per option x 100 puts = $25, 000 However, the three amigos estimated that out of the $2.50, they could obtain a profit of only $2.00. Calculating we have: Proceeds = $2.00 x 100 share per option x 100 puts = $20, 000 (Answer) 5. Suppose the three amigos bought the December 35 puts to hedge their short put position on 10,000...
8 Pages(2000 words)Research Paper

Bars and Night Clubs

...Bars And Night clubs The world today is advancing in a new era which has a lot of recreational and entertaining arenas. One such common arena which can be termed to be an entertaining arena for youngsters and even the oldies is a night club. The term night club is basically used for an arena which is being used in the night only. This essay would further describe the arena of night club in the world today. A night club is a place where many of the entertainment aspects are taken into consideration before designing it. It is usually filled up with music and a dance floor where people can dance together to the rhythm of the music. The dance floor is...
2 Pages(500 words)Essay

Pregnancy options

...Pregnancy Options A pregnancy is one of the most miraculous and natural events that can happen in anyone's lifetime, but is too often threatened by a lack of information that can lead to a poor decision regarding the options that are available for a pregnancy. When a woman becomes pregnant she may decide to carry the baby to term, get a surgical or medical abortion, or place the baby up for adoption. When a woman discovers that she is pregnant, it is critical that she makes a sound decision as soon as possible. Some options, such as a medical abortion, may be time sensitive or require extensive planning. Making the decision to have an abortion with inadequate or incomplete information can...
5 Pages(1250 words)Essay

Motorcycle Clubs

...Motorcycle Clubs Number Introduction Motorcycle clubs abound throughout the country. Some are for specific makes of motorcyclessuch as Harley Davidson or sport bikes. Some are religious- or gender-oriented clubs. Others are designed for anyone interested in the riding sport. Many join for the camaraderie. Others join for the strength and protection offered by a large group. And some people join a motorcycle club simply to enjoy the riding experience. The point of these clubs is to have a like-minded community of riders to enjoy the sport with. No matter who joins, or what type of club it is, all riders have a similar interest-a love of...
7 Pages(1750 words)Essay

Corporate Finance - Real Options - Application of options

...additional work, abandon it outright, shut it down and resume latеr, incrеase it, trim it back, or even switch its strategic rationale. The rеal-options technique has been used in industries like extractors of natural resources, enеrgy firms, and pharmaceuticals corporations, which have a grеatеr scale of uncеrtainty in business investments i.e., as far as the oil-drilling industry is concеrned, uncеrtainties comprise issues such as what the cost of the lеased/purchased land will be. How large the oil resеrves would be? What is the appropriate price for the lеase on the resеrve? Questions similar to these have led to the use of the rеal-options methodology as a systematic analytical tool...
4 Pages(1000 words)Essay

PLA Options

...PLA Options PLA Options Although prior learning assessment (PLA) is an important evaluation for my individual progress, I have too much going on to fit the assessments in my schedule. At this time, I plan to participate in the portfolio process and use my life-learning essay within it. I do not wish to use transfer of courses, because right now I feel that I did not attend the schools long enough, and not sure how many classes I completed. As well, I do not want to do the CLEP or DSST tests right now because I have not completed enough classes to acquire the basic literacy skills to complete the testing options. I understand that they are necessary to get credits that supplement my degree, but there is a huge chance of me failing...
1 Pages(250 words)Assignment

Financing Options

...Financing Options Introduction United Kingdom is a capital- enriched country. Therefore, the financial system of the economy is very strong and facilitates the institutional and retail investors of the economy with a large number of options for large purchases such as house purchase, lease, bank loan and purchase of luxuries cars etc. However, all such financing options suffer from certain underlying issues and drawbacks that affect the concerns and interests of the investors and the economy as a whole to some extent (D. Bell and C. Alex, “A New Fiscal Settlement for Scotland?”, Scottish Affairs, Vol. 41, No. 3, 2001, pp. 121-140). In this paper, various financial options...
9 Pages(2250 words)Essay

Real Options

... Real Options Table of Contents Content Page Real Options ……………………………………………………………3 Financial Management Theories…………………………………………8 Effects and Responses to real options in management………………….9 Summary and Conclusion………………………………………………...10 References ………………………………………………………………..11 Real Options Real options are definite alternatives to an investment. These options relate to tangible assets such as capital investments. They present situations that could lead to venturing into...
7 Pages(1750 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 Investment Clubs Options P4DB for FREE!

Contact Us