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Investment Decision and Plans

You are about to sign up two new clients, a husband and wife, ages 60 and 57, respectively who are recently retired. All their assets are held jointly. Together they have accumulated about $1.5 million in financial assets. Their house has no mortgage. Both are currently in good health They are looking to see if they have sufficient assets to support an annual income now in retirement of $100,000. They have come to you looking for 1) an investment plan and strategy; 2) some idea about whether their investments will earn enough income to come close to their goals, 3) how much risk they will have to take. They expect a firm set of responses from you as to their ability to achieve the goals they've set out. Your job is to answer those questions (and other items as they occur to you) in a one-page minimum / two page maximum response

Solution Preview

You are about to sign up two new clients, a husband and wife, ages 60 and 57, respectively who are recently retired. All their assets are held jointly. Together they have accumulated about $1.5 million in financial assets. Their house has no mortgage. Both are currently in good health, they are looking to see if they have sufficient assets to support an annual income now in retirement of $100,000. They have come to you looking for 1) an investment plan and strategy; 2) some idea about whether their investments will earn enough income to come close to their goals, 3) how much risk they will have to take. They expect a firm set of responses from you as to their ability to achieve the goals they've set out. Your job is to answer those questions (and other items as they occur to you) in a one-page minimum / two page maximum response

People make investment in order to earn additional returns. Hence they hope for earning financial income ...

Solution Summary

This solution details an investment plan or strategy that calculates the expected return to achieve the client's goals and how much risk the client should take. All references used are included.

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