Financial Data Monthly income-$10,000 Living expenses-6,600 Assets*-380,700 *including $5000 emergency fund Liabilities-84,600 Madison is now 43 and
Question:
Financial Data
Monthly income-$10,000
Living expenses-6,600
Assets*-380,700
*including $5000 emergency fund
Liabilities-84,600
Madison is now 43 and Isaac is 45 years old. With approximately 20 years to retirement, Madison and Isaac Graham-Stanton want to establish a more aggressive investment program to accumulate funds for their long-term financial needs.
Isaac does have a retirement program a work. This money, about $110,000, is invested in various conservative mutual funds. The Graham-Stantons also established their own investment program about four years ago, and today, they have about $36,000 invested in conservative stocks and mutual funds in various RRSPs.
In addition to their investment program, the Graham-Stantons have accumulated $11,000 to help pay for the children's education. Also, they have $5,000 tucked away in a savings account that serves as the family's emergency fund. Finally, both will qualify for the Canada Pension Plan when they reach retirement age.
Q)Describe the actual investment portfolio you would recommend for the Graham-Stantons. Incorporate suggested attitudes toward safety (liquidity), income and growth at this stage in their lives. Be sure to include specific types of investments (stocks, bonds, mutual funds, and so on), as well as information about the risk factor(s) associated with each investment alternative. (13 marks)