Bill and Angela Thomas, age 56 and 58, just inherited $200,000 from a distant relative. They are
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Bill and Angela Thomas, age 56 and 58, just inherited $200,000 from a distant relative. They are now trying to assess how to invest the proceeds.
Time Horizon - 5 years to retirement and projected normal retirement lifespan to age 90
Risk Tolerance - Medium
Financial Situation:
- $100,000 in savings (RSPs and TFSAs)
- No pension plans, heavy debt burden ($600,000 mortgage @ 2%)
- Combined income of $100,000/year
- No emergency funds
- Cash Flow is tight each month
Family Situation - no children, ailing parent to support and lives in their house
Investment Knowledge - low, and they generally prefer managed products
- Build a suitable Investment Portfolio (Asset Allocation and Product Level). Indicate the account types that you would recommend and allocate the $ accordingly (i.e. RRSP, TFSA, etc.).
- Provide Rationale as to why you recommended what you recommended and show your client proposal report.
- Pick a suitable index to measure your performance over the past few weeks. Which index did you pick and why? Track your performance against the benchmark for at least 2 weeks.
- Outline your key learnings
- Include any relevant course material that supported your team in making their decisions (i.e. beta, standard deviation, alpha, tactical asset allocation, EPS, P/E, etc.)
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
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