What are the steps that Shelby and Mark should take to prepare for an Investment Program?
First, Mark and Shelby discuss their investment strategy on how aggressive or safe they wish it to be and work it out together. Also, it will be essential to discuss the point at which they wish to use money from the investment. Their conclusive decision will depend on the goal they need to purse and also for their growing family ( Kapoor et al. 2015) . Though long-term investments are not aggressive compared to short-term investment and thus, the initial one is safer. The last step would be for Shelby and Mark consult an investment specialist and guide them on the most feasible investment directions. This would be helpful in achieving the financial goals they have set out. Advantageously, Mark’s 401k offers them with a bit of a springboard for retirement.
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Explain how Shelby and Mark might obtain money to start an Investment Program.
The most effective way would be keeping receipts of their expenses as they continue with their normal spending. At the end of a specific period, a month, for instance, they should develop a monthly cash flow statement. With this information, it will be easy to understand their pattern of spending and where to “tighten” their budget and increase savings for retirement and college fund. In case there is no promotion either Shelby or Mark on the horizon, the funds have to be taken from the already established amount. Also, the two could take money from the inheritance, tax returns, or some one-time gifts and safe such money as an extra cushion.
Explain how the Shelby and Mark might use Personal Financial Planner Sheets Investment Objectives and Investment Information Sources .
In reference to question 1, Mark and Shelby should consider the risk level of their investment decision. It is not likely that all investments may have a positive return but most importantly there is a boast likelihood of good money in return. The Investment Objectives that they should understand should be short-term, medium-term, and long-term. Long-term investment although they are less risky, they tend to have minimal immediate results and a slower growth rate (Rodgers and McFarlin, 2017). The duration of the investment goes hand in hand with the objectives and thus, it is imperative for Mark and Shelby to understand their goals. On the other hand, Invest Information Sources will be helpful with the information which are more beneficial to their investment goals. Personal Financial Planner sheets, Investment Information, and Investment Objectives are all sources and critical resources for the two investors to succeed in their program.
References
Kapoor, J.R., Dlabay, L.R., Hughes, R.J., & Hart, M.M. (2015). Personal finance (11th ed.). New York, NY: McGraw-Hill.
Rodgers, W., & McFarlin, T. G. (2017). Understanding the Decision-Making Process for Personal Investments. In Decision Making for Personal Investment (pp. 11-15). Palgrave Macmillan, Cham.
