BUS.

FINANCE W-9 EXERCISES

Exercise #1 (20 points)

Assume that you are about to enter the accumulation phase. Describe your short-
term and long-term goals. Also, describe your risk tolerance at this stage of your life
cycle. Can you identify specific investments that are consistent and that will help you
attain your listed goals?

If I were to go through the accumulation phase now, I would most certainly consider
my short-term and long-term goals as satisfying individual goals, together with my
special someone, while of course, contemplating about my family's needs and wants.
Some of my short-term goals would be related to acquisition of my necessities such
as house and furniture and appropriately meeting my monthly expenditures, may it
categorize as fixed/needs (I.e., health insurance, utility bills) or variable/wants (I.e.,
travelling expenses). On the other hand, my long-term goals would be related to
future expenditures like saving for my eventual retirement, and if my abilities
permit me, having my own business. Technically, my short-term goals are
considered as things I would achieve soon, 12 months or less, while my long-term
goals are considered as things that may take several years to achieve, and requires
more planning. However, both requires prioritization and determination that would
help me achieve all of them interdependently. As of this life cycle stage, I believe that
I am able to take on high-risk investments as I can easily get back up from obstacles
and start again from the very beginning while taking note of the failures, I made
beforehand. It may be considered by others as aggressive risk tolerance, as people in
my age reach maximum returns with maximum risks.