Client A and B are ages 50 and 48 and have two dependents' ages 15 and 12.

Both are employed full-time and currently have annual salaries of $125,000 and $85,000, respectively.

Each participates in their companies 401K plans. A has accumulated $500,000; B S300,000. A contributes $12,000 per year and B $6,000 per year. They are not eligible for a defined pension plan.

They both have group life insurance through their employers at one and one half their annual salaries at no cost. They have no other life insurance.

They have $50,000 in a joint saving account and add $1,000 per month. They are not saving for college education for the two children as the grandparents have set up and prefunded trusts for this purpose.

They plan at retiring at age 62 and estimate that they will spend $85,000 per, increasing by 1.5% per year not counting federal and state taxes.

They would like to have their assets pass on death to their two children in equal percentages as fast and as cost effectively as possible and to leave their children at least $500,000 each. A and B expect to live to age 82 and age 90, respectively.

If you were my financial advisor, what would you recommend for me to do, regarding my investment choices. Be specific on how much I should invest and where I should invest. Explain why for every decision.