Week 6 Discussion 1&2 - Now with a better working knowledge

Week 6 Discussion 

DISCUSSION 1

Now with a better working knowledge of mutual funds and exchange traded funds, it’s your chance to create your own mutual fund or exchange traded fund. Using various financial websites (i.e., Yahoo Finance, Google Finance, etc.), design your own mutual fund or exchange traded fund.

In your fund, pick at least five (5) investments that will make up your fund. Importantly, please identify the reason(s) you are picking each investment. For example, in short, I would pick Live Nation (NYSE: LYV) because it owns Ticketmaster, and I believe discretionary income for concerts is on the rise. Be thorough in your analysis.

Be sure to rely on sources and cite your references in APA format.

DISCUSSION 2

The book discusses Defined Benefit and Defined Contribution Pension plans (401k & 403b) and says that there are more Defined Contribution plans than Defined Benefit plans, but that there are more participants in Defined Benefit plans. This is a relatively recent (over the last 20 years) phenomenon. Companies have been moving away from Defined Benefit plans in favor of Defined Contribution plans.

Why has this shift been taking place? Why do you think that there are more participants in Defined Benefit plans?

Be sure to rely on sources and cite your references in APA format.