You are to assume the role of a recently hired financial planner for About Us Microspect Photo Designs, a new small family-owned business that is a retailer and manufacturer. The purpose of the company is to bring personal photos to life through beautiful pictures, books, invitations and other keepsakes. In addition to photographs, the company offers rentals of a wide variety of camera supplies and video equipment. About Us Microspect Photo Designs has just opened its doors for business!
The owner of the company is a new entrepreneur and values your opinion. At the time, the owner is trying to decide if the company should purchase insurance and begin the process of placing funds in investments. The owner knows very little about the financial planning process and has requested a meeting with you to understand it better.
The owner has also asked you to come prepared to the meeting to discuss the concept of insurance as well as to determine if purchasing investments is a wise idea. The owner has asked you to come prepared to discuss specifically stocks, bonds and annuities as well as the different financial-service providers of these products. The company currently has $825,000 located in a business money market account at a small bank. You know that you must explain in detail the need for the owner to provide financial information (since at times the owner, can be very protective of releasing any personal information).
