You are to assume the roles of the investment manager and investment specialist at Cross Town Bank. You will be meeting with a customer to discuss options for investing in order to earn a return.
The bank customer has $500,000 in a non-interest-bearing checking account at the bank. The customer is interested in learning about investment options that will allow a return on the money.
The customer is 42 years old, owns a technology business, and is married with three kids ages 10, 15 and 18. The customer is also the caregiver to an 88-year old parent. The customer owns a home and a vacation home.
The customer is relatively risk-adverse and is preparing for the oldest child to go to college. The customer earns $30,000 net a month and has expenses of $20,000 per month.
You must prepare a presentation to review options for the customer. The presentation must include savings accounts, certificates of deposit, mutual funds, bonds and stocks. For each investment, you must provide a definition and discuss the benefits and risks. Based on what you know about the customer you must also provide a recommendation as to how to invest the $500,000 currently in the checking account.
