Essays on Nature of the Asset and Risk Profile for Jerry and Jones Case Study

Tags: Retirement
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The paper "Nature of the Asset and Risk Profile for Jerry and Jones" is a perfect example of a case study on finance and accounting. Thank you Jerry and Jone for Accept us to be you, financial planner. We wish to inform you that our analysis follows a comprehensive evaluation and use of forecasting tools such as the superannuation and discounting model in order to provide an understanding of your current and future financial situation. Our assessment provides that you (Jerry and Jone) should have an investment in portfolio diversification in order to provide sufficient cash to fiancé your living standard after retirement Age since it is evident that you have a reserve ratio of 75% which is quite high as compared to invested cash.

The asset and income appraised provided that the forecast for the financial period ending 2017 is appropriate since there shall be sufficient to finance there cost of living when they retire. The couple must as a result guarantee that the financial investment is sufficient and dependable if the cash that is sufficient in terms of meeting their cost of life is needed.

The good side of having an investment for the couples is that there shall be sufficient cash from reruns on invested capital which will afterward lead to investment in portfolio in order to minimize risk and increase the return on investment portfolios (Alastair Graham, 2000). According to the risk profile for the couples as observed above,   Jerry and jone are aggressive couples with a reserve ratio, of 76% would mean that the coupes will have an opportunity of investing more in order to realize a high return in the near future.

Jerry and Jones must therefore guarantee that they venture the excess cash in a diversified investment portfolio with the right class of group that is volatile with high return. The asset shows that the couple has a liquidity ratio of 5.1 in assets to debt respectively. The worth of the asset is appropriate implying that the investment options will lead to improved returns for Jerry and Jones. The impact of this is that the risk profile for the couple will be aggressive due to the fact that it requires the performance of investment option as also Jerry and should understand the extent that the risk exposure will have on their returns so as to efficiently control risk.

The investment is focused on investing more in securities that will yield high returns within the shortest time possible (Taylor, 2005).

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