Financial advice to manage a portfolio of 1,000,000 Essay

Financial advice to manage a portfolio of 1,000,000 - Essay Example This would rule out any advice that may involve buying speculative shares on the stock exchange. I would suggest that the direction we need to take in this case is a conservative approach, with the intention of safeguard the capital invested whilst at the same time, if possible, creating a small income to supplement. The other area we need to bear in mind is that you may also need to have reasonably quick access to the capital to either supplement the costs of your stay here, or for any other eventually that might crop up that cannot be met from your present income sources. What we would suggest in this instance is that between 20 – 25% of the funds should be placed into a cash situation, such as a building society, limited term bond with the ability to withdraw the funds relatively quickly if necessary. This will attract interest. The balance of the funds should be placed into bands, but it is necessary to ensure that these are what we call safe, rather than junk bonds. Junk bonds are those issued by organisations that the market considers to be doubtful in nature. Whilst the return is higher, so is the risk. I have to mention here that all investments which are linked in some way to company stocks and shares, even the bonds recommended, can reduce in value as well as increase, although bonds values historically do not vary as much as shares. Its must also be remembered that there could be a tax implication, certainly on any interest earned, unless one has invested via a TESSA or ISA. In addition one has to taken into account the possibility of capital gains tax, which comes into force should the gain exceed a given amount. Single parents have some unique situations when it comes to their investment portfolio. You need to make four provisions. One would be for the future, your retirement. The second provision is to provide cash

Case study Example | Topics and Well Written Essays - 250 words - 37

Case Study Example Due to having a good reputation and success Creative Bus Service management must ensure that they come up with a good strategic plan. With the board meeting’s conclusion of expansion of profits they have to choose a good strategy that will ensure growth of profits. Mr. Ghosh market survey can be presented clearly through the Internal Rate of return (IRR), Net Present Value (NPV) and Modified Internal Rate of Return (MIRR). These will clearly state the outcome of the proposed projects by the Creative Travel Bus service. The success of the company revolves around the top management ability to manage effectively projects B operating from Delhi to Patna and A operating from Delhi to Joypur. Mr. Ghash should address congestion that hinders bus transport to the management to seek a way out in order to ensure their customers enjoy efficient services and they maintain the good reputation and name the company possesses (The World Bank, 2011). Being the most reliable transport system in India it has to make a decision so as to uphold their name and services to customers. The World Bank, (2011). India Transport sector. Retrieved on 27th November 2012