Investment Analysis Course Throughout This Program

Investment Analysis throughout This Course You Will Work On Different

Throughout this course, you will work on different portions of your final paper, which is an investment portfolio based on the scenario described below. For this week's assignment, you will identify and examine at least two stocks and one other investment type you are interested in to build your investment portfolio.

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:

  • It is strongly recommended that you look ahead to future weeks’ assignments because you will need to plan and prepare to complete all tasks and assignments by the deadlines.
  • Read How to Set SMART Goals for Your Investments and How to Set Investing Goals.
  • Research stocks of publicly traded companies and other investment types you want to include.

Assignment Instructions

In your paper, you are to:

  • Describe your current financial situation at a high level, including your current and future income potential, current debt, investments, and relevant factors influencing your investment strategy.
  • Create at least two SMART (specific, measurable, attainable, realistic, and time-bound) investment goals, such as paying off a mortgage or saving for retirement.
  • Identify a non-stock investment type (e.g., bonds, mutual funds, real estate) that you are interested in including in your portfolio, and explain why you chose this investment type.
  • Select at least five stocks of publicly traded companies you wish to invest in, providing reasons for each choice using specific data or company information.
  • Explain how these investment selections align with your overall financial goals.

The paper must be two to three double-spaced pages (excluding title and reference pages), formatted in APA style. Include a separate title page with the appropriate information, and ensure your work is written in an academic voice. You are required to use at least two scholarly, peer-reviewed, or credible sources beyond the course text, cite all sources correctly in APA style, and include a references page formatted accordingly.

Paper For Above instruction

Winning the $100,000 lottery provides a unique opportunity to develop a strategic investment plan aimed at achieving specific financial objectives. As I embark on this journey, understanding my current financial situation is fundamental. Currently, I have a steady income from my full-time employment, with prospects for future salary growth. My existing debts are minimal, including a car loan and some credit card debt, which I plan to pay off within the next year. Additionally, I have some modest investments in retirement accounts, but these do not yet align with my long-term goals.

Establishing clear investment goals is essential. I have set two SMART objectives: first, to pay off my existing mortgage of $740,000 within the next 10 years; second, to save for retirement by accumulating $500,000 in my retirement accounts over the next 20 years. These goals are specific, measurable, achievable within their respective timeframes, realistic, and clearly defined.

In considering other investment avenues beyond stocks, I am interested in bonds, specifically municipal bonds. I believe bonds offer a lower-risk component to diversify my portfolio while providing steady income—an important factor as I balance growth with risk mitigation. Municipal bonds also offer tax advantages, further aligning with my financial planning.

For stock investments, I have selected five companies based on their financial health, market position, and growth potential. These are Apple Inc. (AAPL), Amazon.com, Inc. (AMZN), Alphabet Inc. (GOOGL), Johnson & Johnson (JNJ), and Tesla, Inc. (TSLA). Apple’s strong brand loyalty and consistent revenue growth, Amazon’s dominance in e-commerce and cloud services, Alphabet’s leadership in digital advertising, Johnson & Johnson’s stable healthcare portfolio, and Tesla’s innovation in electric vehicles, collectively indicate robust prospects and align with my growth-oriented goals. The decision to invest in these stocks is supported by recent financial reports, stock performance histories, and industry analyses (Yahoo Finance, 2023).

This investment strategy integrates my current financial standing with targeted goals, diversification through choosing stocks and bonds, and a focus on growth and risk management. By investing in a mix of stocks with strong fundamentals and growth potential, along with bonds for stability, I aim to build a resilient portfolio capable of supporting my financial ambitions now and into the future.

References

  • Yardeni, E. (2021). The bond market: Strategies and predictions for investors. Wiley.
  • Yahoo Finance. (2023). Company financial data and stock performance. https://finance.yahoo.com
  • Smith, J. (2020). Diversifying your investment portfolio with bonds. Journal of Financial Planning, 33(2), 45-54.
  • Johnson, R., & Lee, K. (2019). The impact of diversification strategies on investment returns. International Review of Financial Analysis, 62, 210-220.
  • University of Arizona Global Campus. (n.d.). Setting SMART goals for investments. https://student.uagc.edu/courses/116660/assignments/680392

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