Failing to contribute the maximum amount to this retirement plan is simply giving up on free money; by doubling his current contribution of three percent, Chris would actually be tripling the amount added to the 401(k) each year due to the employer's matching policy. This account is also earning an estimated eight percent annually, not far behind the 9.5% the stock market is expected to earn, and the money in the 401(k) remain far more liquid with the ability to borrow up to 50% of the value at any given time, and at a rate lower than a mortgage and significantly lower than a secure personal loan (though funds must be repaid within five years). This strategy will build both short- and long-term growth to a much higher level without impacting the ability to have an emergency fund or purchase a home.
As the Nicholsons have short-term goals that are focused on stability, including the emergency fund and the purchase of a home, an aggressive growth strategy through increased investment in the stock market, even in mutual funds, is not recommended. The spreadsheet is currently optimized for contributions to the 401(k) maxing out at six percent and with the rest devoted to savings; though more substantial contributions to the 401(k) would lead to faster growth due to the interest earnings of the account (Chris is allowed to contribute up to 20% of his earnings each year) this would not be as liquid as the savings account due to the required repayment of borrowed funds within five years; while it makes sense to consider the 401(k) as a part of the Nicholsons' emergency fund, it would not be wise to use this money as a substantial portion of the down payment on their home, and thus maximizing savings contributions are recommended.
As shown in the spreadsheet, this will allow the Nicholsons to put a 20% down payment on their home as early as the end...
If the Nicholsons purchase their home at the end of 2011 with the price estimates given and twenty-percent down, the monthly mortgage payments for a 30-year mortgage at eight percent interest will only be $660 -- $110 higher than their current rent payments, Property taxes will add an additional $100 to their monthly payments, however the tax deductions for mortgage interest payments made will all but certainly offset this. A 15-year mortgage at 7.5% interest will lead to monthly payments of $834 with less of a tax incentive, and would not be recommended at current (and expected future) income levels.
After the home purchase is made, contributions to the savings account should be reduced and somewhat more aggressive retirement investing should occur. The Nicholsons should consider opening an IRA in addition to the 401(k) Chris has, as this will give them greater freedom in selecting investments and earning a rate of return closer to the market rate than the 401(k). A Roth IRA might be beneficial due to the fact that the Nicholsons will have relatively low tax liability over the next decade regardless; though the tax deductions to a traditional IRA would be beneficial in the short-term, the tax-free growth of a Roth IRA would be even more beneficial in the long-term, and again the Nicholsons seem very security-minded. Additional investments in their mutual fund and in the stock market could also be considered when the house is purchases; additional mortgage payments are also a possibility and would increase security, but would produce a lower rate of return over the long-term.
Assuming that both Chris and Faith retain their current employment until retirement, their salaries should increase substantially and provide room for many luxuries as well as abundant savings for post-retirement living expenses and even travel. Securing a home (that can later be sold) for little more than the monthly rent payment makes good fiscal sense, and after that aggressive investment in growth stocks both trhough the market and in an…
With four newer plants able to produce higher qualities and quantities of products at more efficient rates all scheduled to come online within the next decade (and with two of these expected to be operational in the next few years), this area of the business is almost certain to become unprofitable for Lockwood. The timber land that the company holds, however, is still quite valuable, though according to the consultants
In the future, this could result in some kind of major restructuring to deal with these issues. The problem is that these changes will occur when the company is facing greater challenges. This will hurt their competitive position, profit margins, stock performance and brand image. The above information will impact an investor's decision, by making them more cautious about purchasing the company over the long-term. ("The Coca Cola Company,"
INVESTMENT PROJECT (OVERVIEW): As part, analyze performance potential industry BEVERAGE INVESTMENT PROJECT (DETAILS): Assignment: You analyze beverage industry companies coca cola,(KO) monster (MNST) . Assess industry performance years assess expected future performance, , years. Investment project The modern day business environment is continually challenged by emergent threats from both within and outside its immediate environment. In other words, the micro and macro environments of economic agents raise both opportunities and threats, to
29% 2.1 Man Group 12.56% 12.94% 2.34% 1.5 Marks & Spencer Group 4.60% 17.10% 8.33% 0.8 Meggitt 2.62% 65.59% 4.64% 1.0 Morrison (Wm) Supermarkets 3.66% 13.23% 7.00% 0.4 3.05% 69.65% 25.61% 0.6 Old Mutual 3.24% 26.38% 0.41% 1.5 Pearson 3.77% 50.96% 8.51% 0.8 Petrofac Ltd. 2.15% 62.80% 11.03% 1.5 Prudential 3.47% 14.73% 0.54% 1.6 Randgold Resources Ltd. 0.45% 20.71% 14.89% 0.4 Reckitt Benckiser Group 3.57% 0.00% 12.35% 0.6 Reed Elsevier 4.10% 54.47% 34.72% 0.8 Resolution Ltd. 8.21% 0.00% -0.05% 1.0 Rexam 3.43% 23.66% 6.14% 0.8 Rio Tinto 2.66% 15.32% 4.87% 1.7 Rolls-Royce Holdings 2.16% 33.86% 5.18% 2.1 RSA Insurance Group 8.88% 15.67% 1.89% 1.0 SABMiller 2.01% 23.13% 6.16% 1.0 Sage Group 3.39% 6.89% 0.9 Sainsbury (J) 5.00% 11.50% 5.61% 0.8 Schroders 2.68% 8.82% 2.27% 1.4 Schroders (Non-Voting) 3.45% 8.82% 2.27% 0.8 Severn Trent 4.18% 7.81% 3.56% 0.4 Smith & Nephew 1.81% 41.03% 12.26% 0.8 Smiths Group 3.52% 44.25% 10.58% 1.1 Standard Chartered 3.20% 13.15% 0.81% 1.3 Standard Life 6.25% 12.32% 0.19% 1.1 Tate & Lyle 3.44% 16.67% 5.34% 0.6 Tesco 4.49% 16.36% 5.62% 0.7 Tullow Oil 0.83% 30.01% 6.10% 1.3 United Utilities Group 5.05% 7.08% 4.91% 0.4 Vedanta Resources 2.79% 13.60% 2.67% 2.2 Vodafone Group 5.25% 13.41% 5.27% 0.4 Whitbread 2.44% 17.73% 8.01% 0.8 Wolseley 1.91% 14.80% 3.44% 1.3 WPP 2.93% 73.30% 3.34% 1.2 Optimal Portfolio After carefully analyzing the table 1 and calculating the financial measures of all stocks in Table 1, we select one high performing stock from every industry listed to have well diversified portfolio. Based on our
83% in 2008 compared to 2007, but by 127.10% when compared to 2004. Shareholder equity is also included in the ascendant trend revealed by Apple for all financial highlights. By 2008, it had increased by 314.30% relative to 2004. Compared to the previous year, the growth was of 44.71%. The final row of the table deals with the net cash provisions used by the investing operations. These do not reveal a
This system has the ease of being used in any lighthouse irrespective of its current lighting and power systems. Due to this, Vega is the sole company in the world having such advanced technological and optical competencies. Through the system, all the beacons installed can be monitored from a central location, thereby reducing the quantity of false call outs and identifying faults which require manual attention. Considering the Total Cost