Write a paragraph with an investment advice. Your paragraph should address which investment option they should choose, along with an explanation of why that option is the best choice for them. Your instructor will be looking to see if you cite specific information from this lesson and how well you explain it. Various topics you should be addressing in each paragraph may include: Risk-Return Trade-off, Age  Rule, Miracle of Compound Interest, and the advantages and disadvantages of the various investment options.

 

Sean Safety is 68 years old and a year into his retirement. He lives off of his retirement savings and would like to invest some of the money he has saved up. He would like to invest this money for 1 year.

Should he invest in:

AAA rated bond sold by the US Treasury

Wendy Wild is 18 years old and comes from a wealthy family. Her parents support her financially. Her father has given her $5000 to invest to "try to earn as much as she can with."

Stock in a single company.

William Worryer is a 23 year-old. He never went to college, but currently has a decent job as a shift manager at a restaurant. While he makes enough to live on, he worries that he will not be able to save enough money for retirement.

AA rated bond sold by the city of Dallas

Carly Carless is about to move to California in 8 months. She needs to purchase an automobile before moving, as her current car was just wrecked. She has some money saved up and would like to invest it for 6 months before taking it all out and buying the best car that she can.

A certificate of deposit from her bank that matures in 6 months.