East Coast Yachts Case Study
Case Study: A Job at East Coast Yachts
As a recent college graduate and a new employee of East Coast Yachts, it could be a challenging a confusing decision to select an investment option for a 401 (k) plan. There are a number of reasons why it may be more beneficial to invest in mutual funds instead of individual company stocks, but the most common are that mutual funds offer diversification, convenience and lower costs. The convenience of mutual funds is undeniable and is surely one of the main reasons investors choose them to provide the equity portion of their portfolio, rather than buying individual shares themselves.
Additionally, since East Coast Yachts is currently a privately held company and will not be entering the private sector for a few more years, it will be difficult to predict how valuable and desirable the initial IPO will be. Though investing in a mutual fund is certainly no guarantee that your investments will increase in value over time, it's a way to avoid some of the complicated decision-making involved in investing in stocks.
Bledsoe Financial Services offers a couple of different large-capitalization stock options including the Bledsoe S&P 500 Index Fund and the Bledsoe Large-Company Stock Fund. The S&P 500 Index Fund can appear to be a less risky option because it tracks the S&P 500 and the fund return is approximately the return of the S&P 500. Additionally, the fund expenses are considerably lower than more other options, at only .15 percent of assets per year. However, the fund manager is not required to research stocks prior to making investment decisions so there is no guarantee their decisions are the best. The Bledsoe Large-Company Stock Fund has shown great promise because it’s outperformed the market in six of the last eight years. However, the cost is significantly higher at 1.50 percent in expenses, and their large company stock options are restricted to companies within the United States.
The returns on the Bledsoe
As a recent college graduate and a new employee of East Coast Yachts, it could be a challenging a confusing decision to select an investment option for a 401 (k) plan. There are a number of reasons why it may be more beneficial to invest in mutual funds instead of individual company stocks, but the most common are that mutual funds offer diversification, convenience and lower costs. The convenience of mutual funds is undeniable and is surely one of the main reasons investors choose them to provide the equity portion of their portfolio, rather than buying individual shares themselves.
Additionally, since East Coast Yachts is currently a privately held company and will not be entering the private sector for a few more years, it will be difficult to predict how valuable and desirable the initial IPO will be. Though investing in a mutual fund is certainly no guarantee that your investments will increase in value over time, it's a way to avoid some of the complicated decision-making involved in investing in stocks.
Bledsoe Financial Services offers a couple of different large-capitalization stock options including the Bledsoe S&P 500 Index Fund and the Bledsoe Large-Company Stock Fund. The S&P 500 Index Fund can appear to be a less risky option because it tracks the S&P 500 and the fund return is approximately the return of the S&P 500. Additionally, the fund expenses are considerably lower than more other options, at only .15 percent of assets per year. However, the fund manager is not required to research stocks prior to making investment decisions so there is no guarantee their decisions are the best. The Bledsoe Large-Company Stock Fund has shown great promise because it’s outperformed the market in six of the last eight years. However, the cost is significantly higher at 1.50 percent in expenses, and their large company stock options are restricted to companies within the United States.
The returns on the Bledsoe