Data And Solutions
3 Years to net $120,000 (15% Down Payment of $800,000)
S&P 500 Fund Annual Return of 11.88%
$10,000 per year through employment
First Year = $80,000 + 11.88%(80,000)
End of First Year = $89,504 + $10,000 = $99,504
Second Year = $99,504 + 11.88%(99,504)
End of Second Year = $111,325 + $10,000 = $121,325
Third Year = $121,325 + 11.88%(121,325)
End of Third Year = $135,738 + $10,000 = $145,738
Justification
With an Annual yield of 11.88% The S&P500 fund is by far the most consistent way to quantify and hold your money. Hypothetically if the index fund was to take a dip, the % would still, far pass the other two options (A, [1 Year 3.5% annual non-redeemable GIC], B [3 year 4.2% non redeemable GIC (4.2% annual return per year)]) The S&P500 Consists of the top 500 largest U.S company’s and has proven to yield a consistent increase (Even beating inflation). This option suites me best as A. I enjoy making money, B. Although there may be slight risk, if one of your companies was to dip, you still have 499 companies making up for the loss.
Collaboration and Contributions
As, I was elevated into a grade 10 class during my second semester, I did not have a chance to work with anyone.
Core Competency Reflection
I can analyze evidence to make judgements – I displayed this while gathering information to see which investment options will yield me the biggest return the fastest.
I can reflect on my thinking. – This was displayed during my explanation/justification of my idea. This was a good representation of how I reflected on my ideas..
I consider more than one way to proceed in an investigation. – This was displayed during the process of determining which solution was the greatest. I explored multiple options such as (Mutual Funds, Roth IRAs, ETFS, Crypto, Stocks) and came to the analysis that the S&P500 Index fund resulted in the most amount of growth.
I can take on roles and responsibilities in a group; I do my share. – I took on every single role and responsibility.
Citations
Canada Inflation Rate – April 2023 Data – 1915-2022 Historical – May Forecast. https://tradingeconomics.com/canada/inflation-cpi. Accessed 23 May 2023.
“S&P 500 Average Return.” Investopedia, https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp. Accessed 23 May 2023.