After closely looking into my friend’s and his wife’s financial history, I’ve decided to put three months of their combined income into an emergency fund account which can be easily accessible. For the remaining $75,000, I’ve decided to put some in the stock market and some into a mutual fund account. I have chosen Aetna, 3M Company, and Abercrombie and Fitch to invest into the stock market and Eaton Vance Tax Managed Emerging Market for the mutual fund.
I’ve decided to put $25,000 into a cash account. Of that money, $10,000 will be invested in a 3 month Treasury bill account and $15,000 will be in a Municipal Money Market account. I choose 3 month Treasury bills as one of the cash account is because they are the safest investment out there. If incase my client needed some money as earlier as three months they can take it from there T-bill account. I have chosen to put more money into the Municipal Money Market account rather then the T-bill account is because it earns more interest then the T-bills, it’s very liquid, and its earnings are tax free income.
I have selected three different stocks to invest in for my friend and his wife. One of them is Aetna in which I’ve invested $10,000. The reason why I picked Aetna was because it’s more innovative and has a better growth prospects than many of its peers. It was rated five stars by Morningstar. Aetna has also proven to be an excellent industry over the past 10 years and within the past 5 years Aetna has proven to be one of the strongest performers. The second stock I decided to pick is 3M Company in which I’ve invested $20,000. 3M is very well known for its consumer products such as Post-It Notes and Scotch Tape, but 3M's portfolio is relatively diverse, with six segments and 40 separate technology platform ...