3 Discussion Questions, 3 Student Reponses, 2 Journal Entries

ECO110: Taking Charge of Your Economic Future

Week 8 Discussion

Part 1: Investments

Economists talk about saving and investing as two separate steps. After an individual has saved some money, it’s time to decide on investments.

Describe an investment that you or someone else could make. What are the advantages of this investment? What are the disadvantages? What information would you look for to help you do a brief financial analysis to inform your investment decision?

Please respond to a post made by a classmate.

Part 2: Student Response:

Vatleria Thomas

RE: Investments

Hi Class,

There are all different types of investments like stock market, bonds, mutual funds and real estate. With this in mind, Ownership is what most people comprehend. I prefer dealing with real estate but they say it is much easier to invest in the stock market. Real estate consists of houses, land, private business, farms, apartments and even trailer parks; you just have to view them all as an investment opportunity. Having to take care of a bunch of rental properties could be one disadvantage. Trying to get real estate at 50 % of its worth can be worthier hard. Just remember; anything that declines in value is not an investment, its considered an expense. The underwater mortgages of 2008 is a good example of how dangerous investment can be. This is when you make an investment that you cannot afford assuming it can be sold for a whole lot more. The information I would look for to help me to determine a brief financial analysis to inform my investment decision is risk and profit. As I look at it, profit would stand for asset. We all know there is risk in anything that you do; it may be low today but high tomorrow.