Essay on Financial Goals Of The United States

Essay on Financial Goals Of The United States

Length: 1392 words (4 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

The Meriwethers have set two financial goals which entail saving $150,000 for each of their two children, along with $100,000 for retirement. Both of these financial goals, the numbers had to be adjusted for an increase in inflation over the length of time it would take to reach their goals. The estimated inflation rate that was used was 3.0%. This was a conservative number to use as the the average over the next four years is approximately 2.4%, which is under the 3.0% that was used for inflation. The reason 3.0% was chosen was so that if inflation stayed near 2.4%, the Meriwethers would have more money saved for college and retirement. On the flip side, if inflation did rise to the 3.0% the Meriwethers would have the required amount needed for their goals.
For their first financial goal, the Meriwethers need $150,000 for each child adjusted for inflation. The aged of their children are 10 and 5, which start college in 8 and 13 years respectively. For the oldest child, the amount needed adjusted for inflation is $190,016, while the younger child needs $220,280. Child A will have their college funded with the the Certificate of Deposit or CD, that the Meriwether 's possess with a value of $200,000 maturing in one month. This CD will be invested in three steps, broken down into a five year, two year, a one year CD each being compounded annually. At the end of each maturing period, the Meriwethers will reinvest the base $200,000 of the CD, and any interest that is created will be transferred to a secondary CD that will be used for the younger child 's education.
For the Meriwethers to cover the cost of education for their youngest child, the well sell 4,000 shares of their AT&T stock for a value of $154,760 and open a second CD...

... middle of paper ...

... is the most riskiest. However, due to it being the top ranked mutual fund and containing several of the top tech companies, the normal high level of risk is dropped to a lower rate. Of the three recommendations is one that Mr. Meriwether can look at daily if he so chooses because he can take a look at each of the individual companies that compose the mutual fund.
The second type of recommended investment are Series EE government bonds. For starters they are a very low risk type of bond because they are held by the government and it is only under extreme circumstances that the government would default. Though the current rates for Series EE bonds is low, at .10% the US Treasury guarantees that if the amount you invest is held to value at maturity it will double in that time frame which is twenty years. This is both a safe and positive investment for the Meriwethers.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The American Dream : The United States Essay

- There is a sagacity in our states that the American Dream is not what it originally used to be. Study has revealed that it’s quite hard for juvenile or youths Americans originating from poor households to move to middle life status. Thus, many American citizens believe that the decline in economy mobility is leading to an increment or rise in income inequality. Income inequality has revealed a huge impact towards achieving the American dream; the rich keep getting rich while the poor get poorer (Clough, pg 15)....   [tags: United States, United States Constitution]

Better Essays
1283 words (3.7 pages)

The Greatest Leaders Of The United States Essay

- Forty-four presidents have had the honor and privilege to serve our country and put forth their ideas. Although this group is small, the majority of presidents are forgotten by the general public because of their complacency or lack of credible achievements in office. The memorable leaders of the United States are highlighted in movies, documentaries and classes. The effective presidents usually win wars, create financial prosperity or solve a crisis or issue. Several modern presidents have been able to achieve these goals but one president is special because he began the notion or coined the term Modern President....   [tags: President of the United States]

Better Essays
1166 words (3.3 pages)

The Government Of The United States Essay

- The government of the United States is a massive organization that includes a vast amount of functions and responsibility. The Executive Branch of the government must be able to operate efficiently and effectively as the core of the nation’s leadership. Google is a company that most of the nation and the world look to for daily interests. However, Google is a company that thrives on innovation and technology with the freedoms available to a privately run entity. The Executive Branch of the government is responsible for the operation of the federal bureaucracy....   [tags: President of the United States]

Better Essays
1015 words (2.9 pages)

The Immigration Of The United States Essay

- Immigrants in the US: Who are They and How Well are They Doing. (H1) Understanding the Immigrant Population in the US (H2) As a member of the American Immigration Lawyers Association and NYC based firm, we take pride in helping our clients achieve their immigration goals. What you Should Know About Immigrants in the US (H3) The United States of America is now home of immigrants from the most diverse backgrounds. They come to the country for plenty of reasons, some looking for safer living conditions, for financial opportunities, business stability or to escape violence from their home countries....   [tags: Immigration to the United States, Immigration]

Better Essays
1611 words (4.6 pages)

Financial Repression in the United States Essay

- Financial Repression in the United States In times of economic hardships and massive amounts of accumulated debt, governments must look at ways in which they can resolve such indebtedness and put their respective economies back on track towards periods of healthy growth and hopeful prosperity. The United States currently finds itself in such a situation- and with few viable options for remediation, many economists believe that “financial repression” is the answer. The term was created in 1973 via the works of two economists at Stanford University named Edward Shaw and Ronald McKinnon (Reinhart), and refers to the process of reducing debt by “repressing” the wealth within a country....   [tags: economic hardships, growth, debt]

Better Essays
959 words (2.7 pages)

The United States And Climate Change Essay

- The United States looks favorably upon the change in regime structure for paris which creates an avenue for setting nationally appropriate goals for climate mitigating rather than global goals that failed in the past. In the upcoming convention the US will work to meet financial commitment goals without compromising domestic industry or economy. To an extent, the US also recognizes the common but differentiated responsibility of developing countries. The United States remains committed to the goal delineated by the Copenhagen Accord of 2 ° C above pre-industrial levels and strives to achieve this goal through mitigation and financing adaptation and recognizes that comprehensive climate actio...   [tags: Canada, United States, Refugee, Climate change]

Better Essays
1066 words (3 pages)

United States Of The Vietnam War Essay examples

- Protests against the involvement of United States of America into the Vietnam War was such a nationwide organized demonstrations with marches by various people, which including groups of intellectual, college students, and sociologists. Although the majority of U.S people were agreeing and supporting their government policy in Vietnam, this war was described by few American rebellions in U.S community as the most powerful country’s disgrace defeated by the poor and small country in Asia and their idea sank into the huge public support that rise up for their common idea, ‘Coexistence’....   [tags: Vietnam War, United States, Martin Luther King]

Better Essays
1102 words (3.1 pages)

Essay on My Parents At The United States

- My parents arrived in the United States hoping for a better future not for themselves, but for the baby they carried in their arms. We would often move from relatives ' houses since my parents couldn’t afford renting an apartment themselves. We were fortunate enough to have caring relatives who didn 't mind us living with them since they knew the hardships we were going through. I grew up in a household where only Spanish was spoken given that both my parents didn’t speak any English at all. When I was in kindergarten, my teacher was afraid that I would be behind the rest of my classmates, given that I only spoke Spanish fluently....   [tags: High school, United States, Secondary school]

Better Essays
934 words (2.7 pages)

Essay on The United States And Its Effects On America

- Introduction The media in the United Sates is accustomed to portraying Haiti as a failed state without referring to the external influences of other countries on Haiti’s problems including the 1915 to 1934 occupation of Haiti by the United States. Haiti has suffered at the hands of numerous dictators who have robbed the country of its resources, but little is said of the U.S support of some of the dictatorial regimes that have ruled over Haiti and plundered its resources (Maus, 2015). The natural disasters that have wrought havoc in Haiti in the form of hurricanes and floods are solely blamed on Haitians who have decided to destroy their land using destructive agricultural methods....   [tags: United States, United States Marine Corps]

Better Essays
1510 words (4.3 pages)

Financial Statements Essay

- Financial Statements basically show the historical performance or record of the company at some previous point of time. By the time when financial statements are made public, changes are many economical areas such as market conditions, currency exchange rate and inflations can change the values of assets and liabilities. In this case there often exist discrepancies between book value of assets and their market values. In above case there might be companies that are healthy and many go through period of financial distress....   [tags: Economy, Financial Distress]

Better Essays
2290 words (6.5 pages)