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.

PART A

In your final paper, include the following:

Financial Situation and Goals

- Describe your current financial situation at a high level. - Consider discussing your current and future income potential, current debt, current investments, and anything else significant that can impact your investment strategy. - Create at least two investment goals for yourself that are SMART (specific, measurable, attainable, realistic, and time-bound).

Investment Types and Rationale

- Identify at least three major types of investments you would invest in that align with your goals. - Explain your rationale for why you chose those three specific investment types, including how it aligns with your SMART goals or how it supports your overall diversification strategy.

Investment Allocation

- Explain how you would allocate the $100,000 to invest in the three investment types (e.g., $50,000 to several stocks, $40,000 to bonds, and $10,000 to mutual funds). - Include a graphic (e.g., pie chart, table, etc.) that illustrates your dollar or percent allocation of investment funds.

Financial Returns and Risks

- Discuss what financial return you estimate the investment portfolio to deliver 5 years from now using data and calculations. In other words, how much will the portfolio be worth 5 years from now? - Explain two key assumptions you used to arrive at the estimated financial return 5 years from now. - Consider using historical or forecasted data to support the estimated amount. - Discuss one potential risk to your overall portfolio to achieve your desired return.

Portfolio Monitoring

- Explain the importance of monitoring your investment portfolio routinely.

Format of the paper:

Must be six to eight double-spaced pages in length (not including title and references pages) and formatted according to APA Style Must include one graphic (e.g., table or chart). Must use at least two scholarly, peer-reviewed or credible sources in addition to the course text