Case Study Essay

Submitted By zhaponbokchie
Words: 1173
Pages: 5


Investing a hard-earned money is a difficult challenge to every individual. Constraints are available what to choose and consider every aspect and should think twice in every decision. The right portfolio is a first assessment in making judgment benefits, circumstances, risks, and goal. Nowadays, there is lots of information to read in order to make a wise choice through financial adviser or experts who can help you to take to manage and take advantage of best plan investment for your personal fortune. Internet and other information tools which can help in managing finances.
In this case study, a 46 years old Steve wanted to invest his $50,000 savings but he does not want to put it one investment because of the risk he considered. He is still paying for the mortgage that will be finished in 10 years time.
Currently he has a regular income from salaries, where he worked there for 15 years. He is very keen to increase his experience and wanted to work in another company.


Investment strategy is a method for distributing capital of a portfolio. This system is based on an investor’s risk profile. The more risk the investor is willing to put, the more the potential you might loss at the end. So it important to re-balancing portfolio to reduce risk by ensuring not to focus on just any type of investment, because in reality nothing stays forever soon or later it will be replaced by another kind of investment. Some of these are the shares of stocks which stockholders consider the highest risk of investing, mutual funds, or equity investment or bonds with their current worth.

This case study will focus more on bank investment, this is I chose for Steve to invest his money because of the low risk and security of his money. I am going to explain how money works in the bank and what kind of deposit he best suit in. Thru his background it shows he managed well his finances status. Besides from his savings he can add up more to his money in a monthly basis and in later years it will be earning more interest and the principal amount will grow more.

Investing money in the bank is the most common people usually do. Particularly it is very conservative type of investing money because of the low interest, low risk to be at stake. But surely you will get the principal amount you deposited. Furthermore it is insured in Federal Deposit Insurance Corporation up to $250,000.00 in case the bank fails.

Bank offers different kind of investment for your money. It differs from individual needs and goal. You can choose from ordinary savings account which you have all the access 24/7, very liquid anytime. Although interest rates can be very low, but the main feature of this account is you can have able full access of your money without occurring penalty. Checking account where the instrument of negotiating is thru check it can negotiable the day it was issued or will go first in clearing period before you can withdraw the amount. It is commonly use by people who have a business. The third, way of investing money at the bank is the term deposit, certificate of deposit or fixed term deposit, which offers higher interest rates compared to other type of savings account. This way you can increase the amount of savings because of the interest rate and you have the options how long you want to invest your money or it will automatically roll over in the same period you wanted. In this kind of savings you know exactly what you are getting at the end of the term. Also you can divide your money in a “ladder “ strategy. This means you can have several term deposits with different maturity dates. By doing this you can advantage of fluctuating interest rates which you can pull out your money and then invest it again in a higher rates. From this your savings you will gain and be profitable. In this type of investment, you can avail the high rates of interest, secure returns even in unpredictable market conditions, higher