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Introduction
Your long lost Uncle
Alexander has recently died
and left you $1,000,000. Uncle Alexander was an eccentric man, the
inheritance has all sorts of stipulations (rules) attached to it. You must
provide a plan, following all of the stipulations, to the lawyers
before you can receive the money.
The
Task
You must provide the
lawyers with a plan
following all of Uncle Alexander's stipulations so that you can receive
your inheritance.
Here are the
stipulations:
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You must buy a house on Long Island, in a
town that starts with the letter H, and costs between $321,000 and
$479,000. Ensure that you provide the MLS (Multiple Listing Number) on your slide.
-
You must start an IRA Mutual Fund (Roth or Traditional)and contribute the maximum allowed until 2008; in addition, you must provide the past year's investment return.
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Choose a bank, based on 3 comparisions, and deposit $25,000 in an interest bearing account (CD, Savings, Interest Bearing Checking). Include your two other comparisions and explain why you chose this particular bank and investment. Also, how much do you expect to earn on your investment?
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You must purchase the maximum allowable in
United States Savings Bonds. State which type of savings bond you purchased and why; include the current interest rate of the bond.
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Purchase stock from three different companies
(one from the New York Stock Exchange, one from Nasdaq, the third is
your choice). You must buy 1,000 shares in each company. Furthermore, include a 1-year graph of the returns for each of the stocks you purchase.
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Pick a mutual fund and invest $100,000 in it. Compare your mutual fund choice with 3 other funds and explain why you chose this particular mutual fund; include a 1-year graph for the mutual fund you purchased.
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The remaining money may be invested any way
that you see fit, but it must be invested in something... Be sure to explain why you chose this investment and compare it to one other investment while explaining why you did not pick that one.
Process
Do your research and
create a PowerPoint
presentation for the lawyers (your classmates).
The PowerPoint must show a dollar breakdown for all of Uncle Alexander's
stipulations (rules), and must include the estimated returns for each
investment. For example what is the year to date return for the mutual
fund and IRA? What is the interest rate for the $25,000 invested in an
interest bearing account. How much is the value of homes increasing on Long Island? Why did you buy stock in each of the 3
different companies you chose and how much did they earn in the past year?
Be sure to follow all
the stipulations and give
supporting evidence for the choices that you made.
Resources
Yahoo! Finance
Long Island Real
Estate
The
Motley Fool
Treasury Direct
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The page was created by Martha Messina and updated by
Matt Stuard 11/12/04
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Evaluation
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1 |
2 |
3 |
4 |
5 |
| House |
did not follow any
stipulations, but included the MLS for the house |
followed one
stipulation, and included the MLS for the house |
followed two
stipulations, and included the MLS for the house |
followed three
stipulations, and included the MLS for the house |
followed all
stipulations, and included the MLS for the house |
| IRA |
opened an IRA, no
additional information given |
|
opened an IRA and
either explained why that type was chosen or gave maximum contribution
amounts |
|
opened an IRA, reported
the maximum allowed contribution for all years until 2009, and
explained the advantage of the IRA type chosen |
| Bank Account |
chose a bank, but no
account type |
chose a bank and
account type, but did not included the interest rate, or any comparisons |
chose a bank and
account type, and included the interest rate |
chose a bank, account
type, showed interest rate and one comparison rate |
chose a bank, account
type, showed interest rate and two comparison rates |
| U.S. Savings Bonds
(minus 1 point for trying to buy bonds that are not purchasable using
cash) |
|
|
bought some, but not
the maximum allowed in all bonds |
|
bought the maximum
allowed in U.S. Savings Bonds |
| Stocks |
bought only 2 stocks
and did not follow the exchange clause, and no graphs provided |
bought 1,000 shares of
2 stocks and either did not follow the exchanges clause or did not
provide a 1-year price graph for each |
bought 1,000 shares of
3 stocks and either did not follow the exchanges clause or did not
provide a 1-year price graph for each |
bought 1,000 shares of
2 stocks and followed the exchanges clause and provided a 1-year price
graph for each |
bought 1,000 shares of
3 stocks, on the correct exchanges, and showed a 1-year price graph for
each |
| Mutual Fund |
chose a mutual fund
with no explanation |
chose a mutual fund and
showed its returns only |
chose a mutual fund and
showed comparison returns on 1 other funds |
chose a mutual fund and
showed comparison returns on 2 other funds |
chose a mutual fund and
showed comparison returns on 3 other funds |
| Additional Investment |
chose an additional
investment with no explanation |
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chose an additional
investment and explained how it was an investment |
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chose an additional
investment, explained how it was an investment, and compared it with
another possible investment |
| PowerPoint Presentation |
presentation with all 9
stipulations but left out supporting facts or comparisons
on all stipulations |
presentation with all 9
stipulations but left out supporting facts or comparisons on more
than 3 stipulations |
presentation that
included all stipulations, but left out either some supporting facts,
or comparisons (but not both) |
organized presentation
that included all stipulations, supporting facts, and comparisons, but
had distracting elements to it (watch the use of the blinking text and
slide transitions) |
organized, concise
presentation that included all stipulations, supporting facts, and
comparisons |
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