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Investment Portfolio You are a 40 year old, who inherits $1m. You own a home on which you have a mortgage of $400,000. You have
Investment Portfolio You are a 40 year old, who inherits $1m. You own a home on which you have a mortgage of $400,000. You have a decent job and a family income of $100,000 annually. How would you invest your money for a time frame of 20 years? Could you retire at age 607 Make sure you answer the following questions. 1. What are your goals? (1 Mark) 2. How diversified would your portfolio be? 8 Marks) a) Debt market: Kind of bonds (government or corporate)/Terms to maturity (short term/long term). Why? b) Equity market: Sectors you would prefer to invest in and actual companies (blue chip/ venture) c) How would you rate investment in commodities like natural resources, gold or oil or utility companies? d) Would you invest in professionally managed mutual funds? What mix of sectors would you be looking at? 3. Would you pay off your mortgage or continue to pay it and invest elsewhere? Why? (2 Marks) 4. Does real estate market interest you? Would you use some of your investment to buy and flip 'pre built condos/homes or buy homes and rent them out (short term or long term)? (3 marks) 5. Would you prefer to put in the maximum amount in the TFSA and RRSP? Which of the 2 is better suited for your needs? (1 Mark) Investment Portfolio You are a 40 year old, who inherits $1m. You own a home on which you have a mortgage of $400,000. You have a decent job and a family income of $100,000 annually. How would you invest your money for a time frame of 20 years? Could you retire at age 607 Make sure you answer the following questions. 1. What are your goals? (1 Mark) 2. How diversified would your portfolio be? 8 Marks) a) Debt market: Kind of bonds (government or corporate)/Terms to maturity (short term/long term). Why? b) Equity market: Sectors you would prefer to invest in and actual companies (blue chip/ venture) c) How would you rate investment in commodities like natural resources, gold or oil or utility companies? d) Would you invest in professionally managed mutual funds? What mix of sectors would you be looking at? 3. Would you pay off your mortgage or continue to pay it and invest elsewhere? Why? (2 Marks) 4. Does real estate market interest you? Would you use some of your investment to buy and flip 'pre built condos/homes or buy homes and rent them out (short term or long term)? (3 marks) 5. Would you prefer to put in the maximum amount in the TFSA and RRSP? Which of the 2 is better suited for your needs? (1 Mark)
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