Please write an investment policy statement for John and Jane Smith by using the following information.

John Smith (age 62) retired as the founding partner of a regional law firm two years ago. He has been married to Jane (age 61) for 35 years and they have a son, Robert (age 34), who is a single dad with a daughter, Lilly (age 12).

Through inheritance and savings, John has accumulated a $10 million portfolio of 50% cash and 50% US Stocks (VTSAX). Jane worked as a judge and retired with a pension of $80,000 per year. They own a $2 million home and their annual living expenses ($250,000) is fully supported by the portfolio income and the pension that is inflation adjusted at 2% per year. The Smiths would like to purchase a vacation home in Hawaii for $1.5 million within the next year.

John is in good health but he is concerned about the welfare of his son and grandchild and wishes to leave $5 million to them. Robert is a tennis instructor and earns $70,000 per year; Lily is planning to study at a private high school with an annual tuition of $30,000 this fall. Jane has recently adopted a vegan lifestyle and is very interested in sustainable living and hopes to include a $2 million donation to a chairty in her and Johns estate.

The Smiths are taxed at 20% on all incomes.