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B. Explain the major differences between investing in real assets (the topic of this project that you are currently learning about) and investing in financial
B. Explain the major differences between investing in real assets (the topic of this project that you are currently learning about) and investing in financial assets or securities like stocks and bonds (that you have learned as a result of taking this class). Regarding the differences in investing, you are writing from the point of view of an investor or investment advisor. a. If one is concerned about investment for retirement, which general option is better for her/him: real, financial, or a mix of such assets? Why? Explain. (Hint consider different types of risks that retirees may face at retirement and the type of income flow that they need. ) If you recommend a mix of real and financial, explain the nature of the mix, that is, the rough % of money invested in each category. Do you think such a mix should change as a person gets closer as a person gets older? Is there a theory for such an age-based retirement planning? 15
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