Question
This paper will draft an investment plan for the education funds for my two young children that are 4 years old and 5 years old.
This paper will draft an investment plan for the education funds for my two young children that are 4 years old and 5 years old. I have $500,000 left from my grandfather and I'm going to invest some of this money for my children's education in two state universities 15 and 16 years from now. One page should detail your risk tolerances throught the life of the investment. Explain the strategy for managing the risks that you face as you invest two lump-sums into two separate education funds for your children today to grow it into a sufficient amount to fully fund the total costs for a 4-year public university education 15 years and 16 years from today. Detail the inflation expectations along with the tax consequences of your investment returns and the eventual tax consequences of the withdrawals for funding their higher education experience.
Another page should project the expected costs for the education now and into the future as well as estimating the average return on the investment portfolio. Be specific with how you generated your average return by stating the type of investment vehicles used in your education funds. Comment if you will self-manage the investments or seek professional management of the investment vehicles. Reflect on the tradeoff between a conservative strategy of investing larger lump sums today with lower future returns versus smaller lump sum investments and higher returns as this relates to your other goals for retirement planning and managing a brokerage account for improving your future quality of life by maximizing your wealth accumulation. One page should present your computations and calculations that quantify your qualitative discussions from your previous page
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started