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Team 7 Personal Investment

Team 7 Personal Investment. Michael Dellosa Andrew Nimrod. Objectives. Scenario Stocks Roth IRA Summary & Assumptions References. Scenario.

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Team 7 Personal Investment

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  1. Team 7 Personal Investment Michael Dellosa Andrew Nimrod

  2. Objectives • Scenario • Stocks • Roth IRA • Summary & Assumptions • References

  3. Scenario • You are a 23 year old college graduate that has just started a job paying $55,000 dollars a year and want to invest 10% of your yearly salary in the market ,but is not sure on which route to go. So you decide to look at investing your money into stocks or a Roth IRA for a 10 year period in hopes that you will be able to make enough for a nice down payment on a house.

  4. www.investopedia.com Stocks • Basics • A stock is a share in the ownership of a company. • Stock represents a claim on the company's assets and earnings. • Investment in stocks has historically had an average return of around 10%-12% • Two types of stock common and preferred

  5. Stock Analysis

  6. Stock Sensitivity

  7. Stock Sensitivity Cont.

  8. Roth IRA • Roth IRA Basics • Can invest up to $4000 a year by using an after tax paycheck • Collect tax free compound interest on growth on whatever you decide to invest in • Limitation in this project • First 5 years contributions will not be penalized, but the last 5 years will be penalized 10%

  9. Roth IRA Analysis

  10. Roth IRA Sensitivity

  11. Summary Assumptions • Market value always went up • Constant salary increase • Same employer for the 10 yr. period

  12. References • www.investopedia.com • http://www.fool.com/money/allaboutiras/allaboutiras12.htm • http://personal.fidelity.com/products/retirement/getstart/aboutira.shtml.cvsr?banner=12493134&immid=00045&psite=google&crtype=search&kw=Roth_IRA • http://www.dinkytown.net/java/RothIRA.html

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