Part II – Now that you have identified your risk tolerance, you are going to beg

Part II – Now that you have identified your risk tolerance, you are going to begin to develop your own personal investment strategy that will serve as the introduction to your final project submission.
In one page, you are to design your own personal investment policy. In the policy summary, be sure to identify the following main points:
Reserve Funds based on your monthly expenses
Risk Tolerance
Suitable Investments based on Risk Profile – (Focus on Investment Type, not specific investments)Hint: Suitable investments to meet asset preservation are savings accounts, money markets, time deposits)
Investment Time Horizon
Use APA Format
Steps to investing:
1) Meet investment prerequisites: make sure you have taken care of basic needs such as: food, shelter, clothing, and have cash reserves available for emergencies (Smart, Gitman, & Joehnnk, 2017,p.14).
2) Establish investment goals to direct you towards the correct type of investments to make to: (a) accumulate retirement funds, (b) enhance income, (c) save for major expenditures, and (d) shelter income from taxes (Smart, Gitman, & Joehnnk, 2017,p.14).
3) Adopt and investment plan: once you have established your goals create a written plan that includes time frames and risk levels you are willing to take (Smart, Gitman, & Joehnnk, 2017,p.15).
4) Evaluate your investments by assessing the risk and return potential, this topic will be studied further in the e-textbook (Smart, Gitman, & Joehnnk, 2017,p.15).
5) Select suitable investments after you complete due diligence and determine how much risk you are willing to take (Smart, Gitman, & Joehnnk, 2017, p.15). 
6) Construct a diversified portfolio to avoid putting all of your eggs in one basket; you will be able to earn higher rates of return while reducing risk through diversification (Smart, Gitman, & Joehnnk, 2017).
7) Manage the portfolio of investments to make sure the actual performance is close to the expected performance or rebalance your portfolio if needed (Smart, Gitman, & Joehnnk, 2017).


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