Question

ASSIGNMENT

1. Develop you or your family's short-term and long-term financial goals..Create investment strategies and plans toward each of the identified goals.

Answer 1

Introduction Everybody Family has their own Financial Goals both Long Term and Short Term. Short Term Financial Goals can be buying a Car, some Furniture, Clearing a Short Term Debt etc.Long Term Financial Goals can be Buying a House of your Own, Accumulating money for Child's Education and Marriage, Saving Money for Retirement etc.Basically Long-term Financial goals takes minimum 5 years.

My Family's Financial Goals

-> Short term - Buying a car in 1 Year

-> Long Term Financial Goal - Saving Money for Retirement.

Strategy for Short- Term Goal - Basically We can accumulate Savings in Bank Account to buy a car but that does not make any sense to keeping our money idle without any Investment. But Investments are risky. Since our Goal is definite goal and so we at any cost need Safer Investment options that gives good return even markets are variable.Also we should not be able to using that money for other purpose so that it locked only for that particular goal.

Fixed Deposit Every Month in Banks till the money required is accumulated. So we are guaranteed with good short returns along with Principal.

Strategy for Long Term Financial Goal - Contribute towards 401k Account is one of the best retirement plans. Safety, Security and Guarantee. Contribution towards it can reduce Taxable Income and Tax Liability also. Generally 401k accounts are expected to yeild 5% per annum apart from Tax benefit we get by Investing in it.