Investment Portfolio

Posted: October 17th, 2013

Investment Portfolio







Investment Portfolio

            The investment portfolio would take more than seven years considering there are bonds that will mature after 10 years. Therefore, the time horizon for this project would be in the long term. Although other investments such as securities are within seven years, the bonds make the investment a long-term project.

The investment experience for this project can be described as extensive considering the time horizon as well as the investment portfolio itself, which combines several investments in the long term. With securities and bonds that go for more than seven years, the investment can be describes as extensive (Goldie & Murray, 2011). Additionally, it is an investment by the same person, meaning the portfolio is diversified making it extensive.

I do not intend to withdraw retirement savings for non-retirement expenses. This raises the risk of having no retirement savings in the end. Therefore, I would prefer leaving the retirement savings untouched and exploit other means. I would consider retirement savings to be a future investment, and should not be withdrawn since it means having no savings at the end. However, if it is an investment withdrawal likely to earn more, I could consider withdrawing.

In case of an emergency, my long-term investment would last for quite some time if the emergency were not solved by short-term investments. My long-term investments would last for more than a year, about two years in the event of a significant amount of emergency.

The monthly income used for paying up the installment debt is between 25% and 50% per month, which does not include the mortgage. The installment debt does vary with the variation of interest rate in the market but does not exceed 50% of my salary.

In the future, about five years from now I expect that my salary and earnings will be able to grow and exceed the inflation, considering the investments I have made. As I expect my investment to grow within the five years, I would also expect my earnings to exceed the inflation rate or grow faster than the inflation rate within the five-year period (Goldie & Murray, 2011).

I could be ready to take some risks for my investment in order to exceed the inflation rate. Currently, the investment is likely to exceed the inflation rate in the future. However, if it would require taking more risks, I would take some, but not to a big extent.

During steep decline in the equity markets, many people or investors are under pressure to sell their investment. At this time, the equities sell at a cheap price. Therefore, I would see it as a chance of increasing my investment by buying more equities. Therefore, after a steep decline, I would be comfortable, and see it as a chance of buying more equities (Hagin, 2004).

If I had $100,000 invested and lost 20%, which is $20,000, I would see it as an investment opportunity and buy more since many investors would sell cheap at that time to avoid further loss. I would probably hope they would gain in the future, when I shall have some profit. However, if the investment dropped by another $12,000, which is 15% loss to make it 35 in total, I would still hold on and wait for them to gain. Selling the entire investment would mean a bigger loss than waiting for them to gain and earn some earnings.




Goldie, D. C., & Murray, G. S. (2011). The investment answer: Learn to manage your money & protect your financial future. New York, NY: Business Plus.

Hagin, R. (2004). Investment management: Portfolio diversification, risk, and timing–fact and fiction. Hoboken, N.J: Wiley.


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