Erik Johnson has just become a heir to $15 000. He's 23 years old, and hes graduated frm university business program. He works as an assistant managager of retail store. He lives with his friend in a two bedroom apartment. He saves 5% of his monthly paycheck. Erik wants to save his inheritance in secure investments cause he does not wish to lose out on his money. Though he also wants a good yield on his investment. The only main cost that Erik arranges is a 1 week vacation in the Carribean. What suggestion may possibly be given to Erik on how to invest his $15 000?

Question

Erik Johnson has just become a heir to $15 000. He's 23 years old, and hes graduated frm university business program. He works as an assistant managager of retail store. He lives with his friend in a two bedroom apartment. He saves 5% of his monthly paycheck. Erik wants to save his inheritance in secure investments cause he does not wish to lose out on his money. Though he also wants a good yield on his investment. The only main cost that Erik arranges is a 1 week vacation in the Carribean. What suggestion may possibly be given to Erik on how to invest his $15 000?

Answer 1

http://www.jiskha.com/display.cgi?id=1300819996

Answer 2

I don't understnd this.

Answer 3

http://www.investinginbonds.com/learnmore.asp?catid=8

http://cdrates.bankaholic.com/

Answer 4

To suggest an investment option for Erik to consider for his $15,000 inheritance, we need to take into account his age, profession, living situation, savings plan, and desire for secure yet profitable investments.

One option for Erik to consider is diversifying his investment portfolio by allocating a portion of his inheritance into different investment vehicles. Here's a suggestion on how he could allocate his $15,000:

1. Emergency Fund (3-6 months of living expenses): It's important for Erik to have a safety net in case of unexpected events or emergencies. He can set aside around 3-6 months of living expenses, which could range between $4,000 to $8,000, in a high-yield savings account or a money market fund. These options offer low risk but still provide some return on investment.

2. Retirement savings: As Erik is young, starting his retirement savings early is advantageous. He can consider opening an Individual Retirement Account (IRA). Depending on his goals and risk tolerance, he could split this investment between low-cost, diversified index funds or target-date retirement funds. These options allow for potential growth over the long term.

3. Stock market investments: Erik may also consider investing a portion of his inheritance in the stock market. He can research and invest in stable, well-established companies with a history of consistent dividend payments. This approach offers the potential for higher returns but comes with a higher risk. Investing in low-cost, broad-based index funds or exchange-traded funds (ETFs) can provide diversification and reduce risk.

4. Bonds or bond funds: Investing in bonds or bond funds can provide Erik with stability and income. He can consider purchasing bonds or bond funds that match his risk tolerance. Government bonds, municipal bonds, or corporate bonds are options to explore. However, it's essential to research and understand the risks associated with individual bonds or bond funds.

5. Real estate investment: Erik might also consider investing a small portion of his inheritance in real estate. He could explore real estate investment trusts (REITs) or crowdfunding platforms, which allow for smaller investments in real estate properties. These options offer diversification and potential income streams.

Remember, before making any investment decisions, Erik should do thorough research, consult with a financial advisor, and consider his risk tolerance, investment goals, and the current market conditions. Diversifying his investments can help spread the risk and increase the chances of achieving his financial goals.