Personal Investment Options Team #1 Organizers- Eric Tseng Techie- Kevin Curley Summarizers- Juan Cervantes Alex Camerino

Analysis Premise How to make the best personal investment to retire with more money, while analyzing the pros and cons of each investment scenario.

Parameters  25 years old  $50,000 starting salary  Working over 30 year period  Salary increase of 5% a year  After 15 years moves to $80,000 salary  Invest 10% of salary per year  Inflation rate of 3%

Option #1 Savings Bonds and CDs.  Safe, low risk investment  Guaranteed interest rate  Limited flexibility  Easier to predict future value  Not affected by market fluctuations

Option# 2 Stocks and Mutual Funds  Higher risks  More flexibility  Interest rate varies  More potential for higher return  Investments hit harder by recession  Dividends paid regularly

Option #3 Private Manager and Hedge Funds  Hands off approach  Improved rates of return  Minimal risk with greater investment potential  Require higher principal  Less investment knowledge required

Plan of Action  Research current bond and cd values  Research stock market environment  Contact private money managers  Research details of hedge funds  Organize 30 year plan