Aggressive Investment: Tesla Inc.
(TSLA)
Company: Tesla
Company Details: Tesla, Inc. is an American electric vehicle and clean energy company. Known
for innovation in EVs and solar technology, it has a volatile stock history but high growth
potential.
Type of Investment: Stock
Risk Level: High/Aggressive
Expected Rate of Return: Historically ~10–20% annual average, but highly volatile
Minimum Required Investment: Current stock price (~$350 as of today, varies daily)
Why I’m Interested:
- Tesla has been a leader in electric vehicle technology and renewable energy.
- Its stock is highly volatile, meaning there’s a chance for high returns
- The company continues to expand into energy storage and AI technologies.
- Its innovation track record shows potential for long-term growth.
- According to recent data, Tesla’s market capitalization is over $700 billion, indicating investor
confidence.
Yahoo Finance. “Tesla, Inc. (TSLA) Stock Historical Prices & Data - Yahoo
Finance.” Finance.yahoo.com, 2024, finance.yahoo.com/quote/TSLA/history/.
Moderate Investment: Vanguard 500 Index Fund (VFIAX)
Company: Vanguard 500
Company Details: Vanguard 500 Index Fund Admiral Shares (VFIAX) is a mutual fund that tracks
the S&P 500, providing exposure to 500 of the largest U.S. companies.
Type of Investment: Mutual Fund
Risk Level: Moderate
Expected Rate of Return: ~7–9% annual average
Minimum Required Investment: $3,000
Why I’m Interested:
- This fund spreads investment across many large companies, reducing risk compared to a
single stock.
- The S&P 500 historically grows steadily, giving consistent returns.
- It allows you to invest in the overall market without picking individual stocks.
- Diversification lowers the chance of major losses.
- According to recent research, VFIAX has returned an average of 10% over the past 10 years,
making it an attractive moderate-risk investment.
Morningstar, Inc. “Vanguard 500 Index Fund Admiral Shares.” Morningstar, Inc., 27 Jan.
2025, www.morningstar.com/funds/xnas/vfiax/performance? Accessed 5 Sept. 2025.
Conservative Investment: Ally Bank 12-Month Certificate of Deposit (CD)
Company: Ally Bank
Company Details: Ally Bank offers online banking services with competitive interest rates on
CDs and savings accounts.
Type of Investment: Certificate of Deposit (CD)
Risk Level: Low/Conservative
Expected Rate of Return: 5% annual interest (varies)
Minimum Required Investment: $500
Why I’m Interested:
- This investment is safe and guarantees a fixed return.
- It balances out the high-risk stock investment in my portfolio.
- Ally Bank has strong financial stability and competitive rates.
- CDs are federally insured, meaning there is no risk to principal.
- It allows one to earn interest while protecting money from market fluctuations.
Shnugi. “Historical Ally 12 Month CD Rates 2010-2022.” Personal Finance Data, 1
Feb. 2020, personalfinancedata.com/2020/02/01/historical-ally-12-month-cd-
rates-2010-2020/.
