I decided to do a short-term investment because I would like to realize the gain/loss from this

investment and also to redeem for cash as fast as possible. Therefore, I set my time frame for one
year.
The next step is I have to do the risk tolerance assesment to know which financial options fit to
my plan or to know how much risk that I can accept. After doing the investment risk tolerance
assessment from University of Missouri test and InvestRight by the BC Securities Commission, I
found that I'm a moderate investor.

As a result, the strategy that suitable for this kind of investor is balanced strategy or 60/40.
Which means I should have a mix of stocks and bonds in my investment portfolio. The stock
may account for 60% of the assets. With the remaining 40% invested in bonds.

After studying the market and knowing my personality, I decide to choose the index fund which
are 60%.........................
Because I'm lazy to track the market and I have a short time period for investment. Therefore,
invest in index fund is fit for me. Because there is a fund manager who is knowledgeable and
expertise in investment to help take care of and low management fee. The index fund is
diversified across all sectors and stocks. And I also can get tax benefit.

From Investopedia.com, it shows the 4 Best Total Market Index Funds which are……
From the lists of the total market index funds, I decided to choose the Vanguard Total
Stock Market Index Admiral Shares (VTSAX) and Schwab Total Stock Market Index Fund
(SWTSX) because it has a higher one-year return which are 25.71% and 25.63% as of Dec. 31,
2021, respectively. Also, they provide low-cost equity market exposure and no investment
minimum for the SWTSX .

For the Total International Stock Index Fund, I still rely the data on Investopedia.com. It shows
the 4 Best International Index Funds, which are……….
From the lists of the total international stock index funds, I decided to choose the
Vanguard Developed Markets Index Fund Admiral Shares (VTMGX) because it returned 6.67%
to investors in 10 years compared to its benchmark, which is very high. Additionally, the net
expense ratio is also low and has no load fee.

And for the total bond market index funds, I decided to choose the Vanguard Total Bond Market
Index Fund (VBTLX) after studying because it has the highest average one-year return and also
has a lower expense ratio. Additionally, 67.30% of the VBTLX is allocated to U.S. Government
bonds so there is a lower risk.

This slide will show you how much percentage in each financial option……

And how much the return that I could expect from this portfolio. From thebalancemoney.com, it
represents the average returns for all mutual funds, including index funds, within the respective
category. With the three-year average annual return. The US-large cap stock can gain……….
Therefore, for the total stock market index fund I can expect 23% gain from the investment….
As a result, my expected return for this portfolio is 13%.
This slides we will begin to evaluate the portfolio actual performance. To evaluate the
performance of portfolio, I have made two assumptions which are:
The initial balance is 100,000 USD.
The investment period starts from 2021/01/01 to 2021/12/31.
Therefore, the initial balance for each financial asset allocated by each proportion would
be………

The actual return of this portfolio is lower than the expected return based on 2021 actual return.
With an initial balance amount of USD 100,000, we lost USD 16,538 accounted for -16.53%.
The Schwab Total Stock Market Index Fund (SWTSX) lost the most (-21.65%). Also, the
Vanguard Total Bond Market Index Fund (VBTLX) that only invests in bonds is also declining.

This illustrates that the U.S. market in 2021 performed better than in this year;2022. As a result
of the fact that, the economy is currently in a recession period. The Federal Reserve raised the
federal funds rate by 50 basis points in order to fight stubbornly high inflation. Additionally, The
U.S. Leading indicator is projected to decline in next year reflecting that the GDP may decline.

So, what financial options that we should invest in next year. The Forbes advisor suggests
investing in Savings Bonds is interesting because there is a low risk, principal is not lost and also
get good returns. Additionally, the alternative investments such as gold, real estates, NFT and so
forth is also attractive. Because equity returns alone may not overcome market volatility and
rising interest rates. And even though expense ratios trend of alternative investments higher than
the average fund, the performance of alternative assets may outweigh the higher costs as well.