Research task (General Consumer Research):
I am an 18 year old that currently has ten thousand dollars. Write an investment plan to guide me through investing for the future. Specifically, the timespan of this investment plan should be considered to be the rest of my life. Furthermore, this investment plan should be researched with academic and/or authoritative sources. Essentially, I want to understand how a savvy investor would invest, given that they are starting with ten thousand dollars at the age of 18.

Evaluation rubric:
criterion: The response gives specific explanations of how to invest the original ten thousand dollars. Examples:
1) Allocate $6,000 into a low-cost S&P 500 index fund (VOO) because it historically averages 7–10% annual returns and provides broad U.S. market exposure, $2,000 into a high-yield savings account for emergency liquidity, and $2,000 into a Roth IRA for tax-free retirement growth.
2) Invest $5,000 in a total stock market ETF (VTI) to capture long-term global equity growth, $3,000 in a bond ETF (BND) to reduce portfolio volatility, and keep $2,000 as cash in a money market fund to cover unexpected expenses, ensuring both growth and safety.
3) Put the full $10,000 into a robo-advisor portfolio (e.g., Betterment at an 80/20 stock-to-bond allocation) because at age 18 the long horizon allows high equity exposure, while the bond allocation provides stability during downturns and reduces emotional risk.
4) Contribute $6,000 to a Roth IRA invested in a 2065 target-date fund because contributions grow tax-free over decades, then place $2,000 into a total international stock ETF (VXUS) for diversification, and $2,000 into a certificate of deposit (CD) for guaranteed safe returns.
weight: 5
axis: Explicit Criteria

criterion: The response mentions at least three asset categories (e.g., U.S. equities, international equities, bonds/cash). Examples:
1) The response suggests splitting the $10,000 into U.S. equities through an S&P 500 index fund, international equities through a total world ex-U.S. fund, and bonds through a U.S. bond ETF to balance growth and stability.
2) The response allocates money to U.S. stocks (growth engine), global emerging markets (to capture higher long-term returns), and cash or money market funds (for liquidity and emergencies).
3) The response highlights diversification across U.S. equities, international equities, and real assets like REITs or commodities, each with a distinct role in protecting against different economic conditions.
4) The response recommends a 3-way split: U.S. stock market fund for long-term appreciation, developed international market fund for geographic diversification, and government bonds or TIPS for inflation protection and lower volatility.
weight: 5
axis: Implicit Criteria

criterion: The response advises establishing a cash emergency fund of at least three months of living expenses before investing the remainder. Examples:
1) The response recommends keeping $3,000 in a high-yield savings account to cover three months of rent, food, and utilities, before investing the other $7,000 in index funds.
2) The response says to first calculate monthly expenses (e.g., $1,500/month), then set aside at least $4,500 in cash as an emergency fund, and only invest the surplus.
3) The response advises building a cash cushion equal to three to six months of expenses in a money market account or certificate of deposit, to avoid having to sell investments in a downturn.
4) The response highlights that emergencies like job loss or medical bills can derail investments, so it instructs to secure at least a three-month emergency fund in liquid cash before putting the rest into long-term assets.
weight: 5
axis: Implicit Criteria

criterion: The response suggests a long investment horizon (e.g., 40+ years). Examples:
1) The response emphasizes that at age 18, investing in U.S. equities for at least 40 years allows compound interest to work most effectively, turning small contributions into substantial wealth by retirement.
2) The response notes that a global stock index fund should be held for multiple decades, since short-term volatility is common, but over 40+ years, long-term trends historically overcome downturns.
3) The response highlights that bonds and other safer assets can be introduced gradually later in life, but for now, the focus should be on growth assets held with a long horizon of 40 to 50 years.
4) The response advises ignoring daily market fluctuations and instead sticking with a disciplined plan for at least four decades, because time in the market is a bigger driver of wealth than timing the market.
weight: 5
axis: Implicit Criteria

criterion: The response recommends using at least one U.S. tax-advantaged retirement account (e.g., Roth IRA, 401(k)). Examples:

1) The response suggests contributing $6,000 to a Roth IRA because investments grow tax-free for decades, which is especially valuable when starting at age 18.
2) The response advises using an employer-sponsored 401(k) plan and contributing enough to receive the full employer match, since this is essentially free money on top of tax-deferred growth.”
3) The response recommends maxing out contributions to a Roth IRA first, then using a traditional IRA if more money is available, in order to diversify future tax treatment.
4) The response highlights the strategy of contributing to both a 401(k) for immediate tax deductions and a Roth IRA for long-term tax-free withdrawals, balancing short- and long-term tax benefits.
weight: 5
axis: Implicit Criteria

criterion: The response uses at least three authoritative external sources (e.g., SEC.gov, Vanguard research, an academic paper). Examples:
1) The response cites an SEC.gov guide on mutual funds to explain the benefits of low-cost index investing and regulatory protections for investors.
2) The response references a Vanguard research whitepaper on the long-term performance of diversified portfolios, supporting the recommendation to invest in both U.S. and international equities.
3) The response includes findings from an academic paper in the Journal of Finance showing how asset allocation explains the majority of portfolio variance, strengthening the case for diversification.
4) The response quotes data from the Federal Reserve on historical inflation rates to justify why TIPS (Treasury Inflation-Protected Securities) or equities can protect purchasing power over decades.
weight: 4
axis: References & Citation Quality

criterion: The response includes any information which isn’t supported by an authoritative source (e.g., includes information from reddit). Examples:
1) The response tells the reader to ‘just buy whatever stocks people on Reddit’s WallStreetBets are hyping up,’ without citing any financial regulator, research paper, or professional investment guidance.
2) The response claims that ‘cryptocurrency always beats the stock market’ but provides no evidence from SEC.gov, academic finance journals, or established investment research firms.
3) The response suggests ‘my cousin made a fortune trading penny stocks, so you should too,’ relying on anecdotal evidence instead of published data or authoritative analysis.
4) The response points to a personal finance blog post with no references and treats it as fact, instead of drawing on official government, institutional, or peer-reviewed sources.
weight: -5
axis: Explicit Criteria

criterion: Response states an expected long-term equity return between 5% and 10% per year.
weight: 3
axis: Explicit Criteria

criterion: Response recommends primarily low-cost diversified American index funds or ETFs with an expense ratio of 0.20% or less (e.g, VTI, SPY).
weight: 3
axis: Explicit Criteria

criterion: Response recommends speculative practices (e.g day trading, margin, options, individual stocks) .
weight: -3
axis: Explicit Criteria

criterion: Response suggests investing greater than or equal to 15% of the portfolio in bonds.
weight: 5
axis: Explicit Criteria

criterion: Response includes guidance to rebalance the portfolio on a regular schedule of at least once per year.
Examples:
1) The response recommends rebalancing once per year by selling some stocks if they grow too large a share of the portfolio and reinvesting in bonds or cash, to maintain the original allocation.
2) The response advises setting a fixed annual date, such as every January, to rebalance back to an 80/20 stock-to-bond mix, regardless of how markets performed.
3) The response highlights that without yearly rebalancing, a portfolio could drift into excessive risk (e.g., from 70/30 to 90/10 stocks-to-bonds after a bull market), so annual adjustments keep risk in check.
4) The response suggests using an automated broker feature to rebalance yearly, ensuring allocations stay aligned with the investor’s age and risk tolerance, without the need for emotional decision-making.
weight: 4
axis: Explicit Criteria

criterion: Response suggests investing the initial $10,000 via dollar-cost averaging.
weight: 4
axis: Explicit Criteria

criterion: Response includes an educational or non-liability disclaimer (e.g., advises consulting a professional).
weight: -4
axis: Explicit Criteria

criterion: The response warns that tax rules and account availability vary by country. Examples:
1) The response notes that while a Roth IRA is available in the U.S. with tax-free growth, investors in Canada would need to use a TFSA or RRSP instead, since U.S. retirement accounts aren’t accessible.
2) The response cautions that capital gains and dividend tax rates differ across countries, so advice about U.S. tax efficiency may not apply elsewhere.
3) The response points out that employer-sponsored 401(k) plans are unique to the U.S., and workers abroad may need to rely on government pension schemes or private retirement accounts.”
4) The response includes a disclaimer that before opening accounts or investing, the reader should check local tax laws and account options, since what is advantageous in one jurisdiction may not exist in another.
weight: 5
axis: Implicit Criteria

criterion: The response notes that investments depend on at least one characteristic of the user (e.g the response says: if you are more risk averse, you might want to invest __, else __). Examples:
1) If you are more risk averse, you may prefer a higher bond allocation (e.g., 40% bonds, 60% stocks) to reduce volatility. If you are comfortable with risk, you could hold 90% stocks and 10% bonds for greater long-term growth.
2) The response points out that if you have short-term goals (like buying a house in 5 years), more money should stay in cash or CDs. If your goals are long-term (retirement in 40+ years), then a heavy stock allocation makes sense.
3) The response highlights that if you have a stable income and strong job security, you can afford to take more investment risk. If your income is uncertain or variable, a more conservative allocation with a larger emergency fund is safer.
4) The response explains that if you panic easily when markets drop, you should hold more bonds and cash to avoid emotional selling. If you can stay calm through downturns, then higher stock exposure is more appropriate.
weight: 5
axis: Implicit Criteria

criterion: The response outlines a plan for ongoing future contributions. Examples:
1) The response recommends contributing 10–15% of every paycheck into investments, automatically directed to index funds, to build wealth steadily over time.
2) The response advises maxing out a Roth IRA each year (currently $6,500) and then investing any extra savings in a taxable brokerage account.
3) The response suggests increasing contributions as income rises - for example, starting at $200/month as a student, then raising it to $500/month after landing a full-time job.
4) The response highlights the power of dollar-cost averaging, recommending fixed monthly contributions (e.g., $300/month) regardless of market conditions to smooth out volatility.
weight: 5
axis: Implicit Criteria

criterion: Response suggests shifting to a higher bond or lower-risk allocation as the user ages.
weight: 3
axis: Synthesis of Information

criterion: The response avoids unexplained financial jargon; any technical term used is briefly defined or obvious to a novice investor. Examples:
1) ETFs (Exchange-Traded Funds) - ETFs are baskets of stocks you can buy like a single stock.
Why invest: Diversification across many companies, usually with very low fees. Good for long-term growth.
Risks: Value can still drop in market downturns; some ETFs track niche sectors that may be volatile.
When not suitable: If you need guaranteed returns (e.g., short-term goals) or are prone to panic-selling during downturns.

2) Roth IRA - A Roth IRA is a retirement account where your investments grow tax-free.
Why invest: Huge tax advantage if you expect to be in a higher tax bracket later; decades of compounding without tax drag.
Risks: Contributions are limited ($6,500 per year as of 2025), and investments inside are still subject to market risk.
When not suitable: If you’ll need the money before retirement age (59½) or your income is too high to contribute directly.

3) Asset Allocation - Asset allocation means how you split your money across stocks, bonds, and cash to balance growth and safety.”
Why invest: Provides risk management; younger investors can take more stock exposure for growth, while older investors shift toward bonds/cash for stability.
Risks: Too aggressive (stocks-heavy) exposes you to big downturns; too conservative (cash-heavy) may not keep up with inflation.
When not suitable: If you ignore your personal risk tolerance and blindly follow a generic allocation without adjustments.

4) U.S. Stock Market Fund (instead of ‘equity index tracking vehicle’) - A U.S. stock market fund lets you own a small piece of hundreds of American companies.”
Why invest: Historically strong long-term returns; simple and effective way to build wealth over decades.
Risks: Short-term volatility; heavy U.S. exposure may limit international diversification.
When not suitable: If you’ll need to withdraw money in the next few years or want more global exposure.
weight: 5
axis: Communication Quality

criterion: The response includes any content not explicitly related to investing. Examples:
1) The response goes into a long discussion about career choices at age 18, such as whether to attend college, pursue a trade, or take a gap year, without tying these decisions back to how to invest the $10,000.
2) The response offers general life advice about health, relationships, or personal development (e.g., exercising, making friends, or avoiding stress) without linking it to the investment strategy.
3) The response provides commentary on political ideologies or government policies (e.g., criticizing tax laws or debating fiscal policy) that do not directly connect to the investment plan.
4) The response shifts focus to unrelated financial products like car loans, mortgages, or budgeting apps, without showing how they influence or complement the investment of the initial $10,000.
weight: -5
axis: Explicit Criteria

criterion: The response identifies key risks (market, inflation, sequence-of-returns). Examples:
1) The response notes that market risk is unavoidable since stocks can lose value during downturns, and long-term diversification is necessary to manage this volatility.
2) The response highlights inflation risk, explaining that cash loses purchasing power over decades if it is not invested in assets that grow faster than inflation.
3) The response identifies sequence-of-returns risk, particularly in retirement, where withdrawing money during a market downturn can permanently reduce the sustainability of a portfolio.
4) The response recognizes that inflation and market risk often interact—such as when high inflation triggers higher interest rates, causing both bond and stock values to fall simultaneously.
weight: 5
axis: Implicit Criteria

criterion: The response describes concrete strategies to mitigate risks such as inflation.
Examples:
1) Invest a portion of the portfolio in Treasury Inflation-Protected Securities (TIPS), since their principal value rises with inflation, protecting purchasing power.
2) Maintain long-term exposure to equities through index funds like the S&P 500, as stocks historically outpace inflation over multi-decade horizons.
3) Allocate some funds to real assets such as REITs (real estate investment trusts) or commodities like gold, which tend to hold value or appreciate when inflation rises.
4) Keep emergency savings in high-yield savings accounts or short-term certificates of deposit (CDs) that adjust rates more quickly than traditional accounts, reducing erosion from inflation.
weight: 4
axis: Implicit Criteria