Final Presentation – Investment Portfolio

This week, you will be creating an eight- to 10-slide PowerPoint presentation based on your Week 4 Investment Portfolio assignment. This presentation should address the main components of your investment portfolio as if you are presenting it to a trusted friend or relative to get their opinion, perspective, and input. It should be based on the following hypothetical scenario:

Scenario: 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.

In addition to creating your eight to 10 slides, you must also include slide notes (also called Speaker Notes). For each slide, your slide notes should contain a minimum of 100 to 200 words describing and expanding information on that slide.

Your presentation must also include at least two graphics (e.g., charts, trend line, tables) to illustrate your key points and make the presentation look professional. Once you have created your presentation, you will also need to save it as a PDF file with your slide notes visible and submit it to Waypoint.

In your eight- to 10-slide presentation, include the following:

• Describe your current financial situation at a high level.
• State your two SMART investment goals.
• Discuss your three major types of investments and your rationale for why you chose those three specific investments types.
• Explain how you would allocate the $100,000 to invest in the three investment types.
• Include two graphics that illustrate your dollar or percent allocation of investment funds or that visually support your investment portfolio.
• Discuss what financial return you estimate the investment portfolio to deliver 5 years from now.
• Explain two key assumptions you used to arrive at the estimated financial return 5 years from now.
• Discuss one potential risk to your overall portfolio.
• Describe your plan for monitoring your investment portfolio routinely.

Remember: Add at least 100 to 200 words of explanation to the Speaker Notes section of each slide. Be sure to include at least two graphics.

Submission Instructions

• Submit your PowerPoint to Waypoint as a PDF document with the Speaker Notes visible. To do this, follow these instructions:Select File.

• Select the Print option.

• Change the Printer option to your PDF reader (e.g., Adobe PDF).

• Change the Full Page Slides option to the Notes Pages The preview of your presentation on the right should change to show your Speaker Notes.

• Click on Print.

• Make sure you save it as a *.PDF file and submit it to Waypoint

The Investment Portfolio Presentation

• Must be eight to 10 slides in length (not including title and references slides) and formatted according to APA Style.
• Must include a separate title slide with the following:Title of presentation in bold fontSpace should appear between the title and the rest of the information on the title page.Student’s nameName of institution (The University of Arizona Global Campus)Course name and numberInstructor’s nameDue date
• Must include at least two graphics (e.g., tables, charts, trend lines).
• Must use at least two credible sources in addition to the course text.
• Must document any information used from sources in APA Style
• Must include a separate references slide that is formatted according to APA Style
• Must be submitted to Waypoint as a PDF with the speaker notes visible.

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Investment Portfolio
Jennifer Cabrera
The University of Arizona Global Campus
Principles of Investment – BUS405
Sina Patel
November 7, 2023
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Financial Situation and Goals
Currently, I am employed as a stock manager, generating an annual salary of $80,000. In
addition, I am supported by a modest-scale enterprise that produces $1,600 on an average monthly
basis. It gives me great pleasure to report that I do not owe any money. As a result, I am in a solid
financial position. In addition, I have amassed a diversified mutual fund portfolio worth $30,000
and upheld an emergency fund of $15,000, commensurate with the cost of living for two months.
I expect my income to increase by 5% annually over the following three years. Acquiring a
retirement residence and preserving for my retirement are my principal financial objectives.
Investment Goals
Saving for Retirement: Macroeconomic savings constitute my primary objective. I have
formulated this objective in a SMART fashion, which signifies the following: Specific (centered
on retirement savings), Measurable (allowing for consistent contributions to monitor progress),
Attainable (reliant on my present income), Realistic (taking into account my financial
circumstances), and Time-Bound (with a target date of 25 years). Planning for retirement is an
essential component of my financial future.
Commencing retirement savings early and maintaining a consistent contribution schedule
is imperative. My ideal retirement is the ability to sustain my present level of living, participate in
my favorite activities, and be liberated from financial obligations. Over the following three years,
the 5% annual increase in income will furnish me with supplementary funds to augment my
retirement savings. By allocating my investments across various retirement accounts (e.g., a 401(k)
and an IRA), I intend to capitalize on the long-term advantages of compound interest and tax
benefits.
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`The following investing goal is investing in real estate is an additional objective that I hold
in high regard. I aim to procure rental properties to generate supplementary income and capitalize
on long-term appreciation. Similar to the preceding goal, this one is SMART in nature due to the
following reasons: it is specific (the acquisition of rental properties), measurable (accountability
of cash flow tracking), achievable (down payment savings), realistic (property selection in regions
experiencing growth), and time-bound (property acquisition within five years) (Astiti et al., 2019).
Real estate investment is an appealing prospect due to its multitude of advantages. Initially,
it furnishes a stream of passive income in the form of tenant rental payments, which can serve as
a substantial cash flow source. Furthermore, real estate properties have the potential to increase in
value gradually, thereby offering a considerable return on investment. Real estate investments also
provide tax benefits, including mortgage interest deductions and property depreciation allowances.
In order to achieve this objective, I intend to apply due diligence and conduct extensive
market research to identify properties in regions with a track record of expansion and prospective
development. Additionally, I will persist in my efforts to accumulate funds for a down payment,
an essential component in the procurement of real estate assets. With due diligence and strategic
planning, I possess unwavering assurance in accomplishing my real estate investment objective
within the allotted period.
Investment Types and Rationale
A fraction of my investment portfolio is invested in individual stock markets, such as those
of Visa, Apple, Microsoft, Amazon, and Google. These stock investments are my objectives as
they provide prospects for sustained expansion and dividend income. These firms, which are
sector-representative and have solid track records, provide support for my overall investment
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strategy. Risk management in my portfolio requires diversification, and these securities satisfy that
function.
The belief that these corporations have a track record of consistent development and
innovation influences my stock selection. As an illustration, Apple maintains a devoted clientele
and continues to broaden its assortment of products and services. Microsoft is an industry leader
in software, with enterprise and consumer markets alike benefiting from the extensive usage of its
products. Amazon and Google dominate the technology and e-commerce industries, respectively,
while Visa is the global leader in financial services. Investing in well-established and esteemed
corporations not only presents an opportunity for sustained capital growth over an extended period
but also ensures a consistent inflow of dividend revenue. By reinvesting these dividends, I can
increase the growth of my portfolio or secure supplementary income for my retirement (Olayinka,
2022).
Real estate investment aligns with my overarching objective of procuring rental properties
to generate supplementary income and achieve long-term value appreciation. Real estate provides
a concrete and revenue-generating asset that can contribute to the diversification of my overall
investment portfolio. My objective is to optimize the likelihood of substantial gains in property
value by selecting properties situated in developing regions, thereby substantially enhancing my
long-term financial stability.
Real estate investment presents a distinct array of benefits. It provides a hedge against
inflation, as property values tend to increase over time. In addition, property rental income can
provide a dependable source of cash flow, which is particularly critical during retirement. In
addition to tax advantages such as deductions for mortgage interest and property depreciation, real
estate can assist in mitigating one’s overall tax liability.
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It is essential to conduct an extensive investigation and perform due diligence before
investing in real estate. Real estate investment success depends on location; therefore, I plan to
concentrate my efforts on regions characterized by robust economic fundamentals and substantial
growth prospects. To ensure that the properties remain in good condition and to maximize the
return on investment, appropriate property management and maintenance will be crucial.
Mutual funds are a critical component of my investment strategy due to the professional
management and diversification they offer. To ensure a diversified and well-balanced investment
strategy, I allocated a proportion of my portfolio to mutual funds. By providing exposure to a
variety of asset classes (e.g., equities, bonds, and other securities), mutual funds assist in risk
diversification and ensure that my investments are in line with my long-term objectives.
Mutual funds facilitate access to a diverse portfolio of investments under the guidance of
seasoned fund managers. With their expertise, these administrators determine asset allocation and
investment selection, which can be particularly advantageous in a volatile and complex financial
market. Diversification across multiple asset classes and industries can be achieved through mutual
fund investments, thereby mitigating the risk associated with investing in individual stocks.
Investors who favor a more passive approach to capital management should also consider mutual
funds. By having professionals manage my mutual funds, I can have confidence in their ability to
make informed investment decisions; this not only conserves my time and energy but also ensures
that my portfolio remains diversified.
Investment Allocation
Assuming I have $100,000 to invest, I would allocate it as follows:
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Stocks
$50,000
Real Estate:
$30,000
Mutual Funds:
$20,000
Given a capital allocation of $100,000, I would allocate the following proportions: $50,000
into equities, $30,000 into real estate, and $20,000 into mutual funds. This risk-return balancing
allocation strategy was developed with my long-term financial objectives and risk tolerance. Most
of my investment, amounting to $50,000, is allocated to equities, which signifies my conviction in
the expansion prospects of well-established corporations such as Apple, Microsoft, Amazon,
Google, and Visa. By providing both dividend income and capital appreciation, these equities
contribute to a diversified portfolio. With the $30,000 invested in real estate, I will be able to
pursue my objective of acquiring rental properties, which have the potential to generate rental
income and appreciate in value. In conclusion, the allocation of the $20,000 in mutual funds
constitutes a diversified and effectively managed strategy for asset allocation, which aids in the
dispersion of risk across many asset classes and industries. The objective of this balanced
allocation strategy is to optimize the accumulation of long-term wealth while efficiently mitigating
risk.
Figure 1: Pie chart illustrating the Investment aAllocation:
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Investment Allocation
20%
Stocks
50%
30%
Real Estate:
Mutual Funds:
Financial Returns and Risks
When projecting financial returns for the following five years, I consider a multitude of
factors, such as historical data, anticipated growth rates, and dividend yields of the equities under
consideration. By applying a conservative annual appreciation rate of 5% to real estate and an
average annual return of 7% to equities, the projected value of my portfolio in five years is
approximately $14,000. A cautious approach to real estate appreciation and historical stock market
performance informs these estimates.
Market volatility is a prospective risk that could affect the desired return of the portfolio.
Volatility in stock prices can impact the overall value of a given portfolio. Economic recessions
may also affect the real estate sector. Nevertheless, I aim to alleviate these potential hazards by
utilizing portfolio diversification and regular evaluations. By spreading risk across various asset
classes, diversification reduces the effect that the performance of a particular investment has on
the portfolio (Dangol & Manandhar, 2020).
Portfolio Monitoring
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P portfolio evaluations are critical for determining the portfolio’s performance, pinpointing
underperforming investments, and implementing any required modifications to the investment
approach. By conducting continuous surveillance, I guarantee that my investments align with my
financial objectives and risk tolerance. This proactive approach to financial management
safeguards my future.
Conclusion
In conclusion, my financial situation and investment objectives are precisely delineated
and approachable. With consistent vigilance and a systematic evaluation of my investment
portfolio, I am confident that I can make steady progress toward establishing a solid financial
foundation, guaranteeing my retirement, and procuring the retirement domicile of my dreams. By
maintaining a diversified portfolio consisting of equities, real estate, and mutual funds, I can attain
my long-term financial goals.
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Reference
Astiti, N. P., Warmana, G. O., & Hidayah, M. (2019). Financial literation and investment decision
behavior of entrepreneurs in Bali. International Journal of Applied Business and
International Management, 4(3), 64–68. https://doi.org/10.32535/ijabim.v4i3.683
Dangol, J., & Manandhar, R. (2020). Impact of heuristics on investment decisions: The moderating
role of Locus of Control. Journal of Business and Social Sciences Research, 5(1), 1–14.
https://doi.org/10.3126/jbssr.v5i1.30195
Olayinka, A.A. (2022). Financial statement analysis as a tool for investment decisions and
assessment of companies’ performance. International Journal of Financial, Accounting, and
Management, 4(1), 49–66. https://doi.org/10.35912/ijfam.v4i1.852