Steve and Jane Mitchell, both 35 years old, met and married. They each embarked on promising, demanding and successful executive careers in money management after grad school. Their goal is to retire at age 60, downsize to a smaller home, and travel. They are now well established at their firms, have a son and are expecting their second child, a daughter, in 4 months.  They hope both children will follow their tracks and go to college for an undergraduate and graduate degree. They have not yet begun to save for their son's education, but know that it's important.  

They anticipate supporting their children throughout college.  Assume that the Mitchells will each live to age 85:

A.  Compare and contrast the Mitchells' investment time horizons prior to and immediately subsequent to the birth of each of their children.

B.  Discuss the financial challenges that having two children will place upon their retirement objectives and discuss the approaches to meeting those challenges, including investing more aggressively. 

Answer rating: 100% (QA)

A Prior to the birth of their first child the Mitchells had a longer investment time horizon They ha... View the full answer