You are an independent financial consultant and a young, potential client, Jake Jemmins, comes to you and indicates that he has $12,000 to invest; he won’t need the money for 40 years. He heard of an investment plan that will pay him an 8% per year return for the first 20 years and 12% per year for the last 20 years.
In memo form, provide Jake with a detailed analysis, including how much will he have at the end of the 40 years. State your assumptions and discuss any risks with him. If appropriate, ask questions of him, but do provide him with your opinion on this investment option.
In memo form, provide Jake with a detailed analysis, including how much will he have at the end of the 40 years. State your assumptions and discuss any risks with him. If appropriate, ask questions of him, but do provide him with your opinion on this investment option.