The triplets are now three and a half years old and Jamie Lee and Ross, both 38,
Question:
The triplets are now three and a half years old and Jamie Lee and Ross, both 38, are finally beginning to settle into a regular routine now that the triplets are a little more self-sufficient. The first three years were a blur of diapers, feedings, baths, mounds of laundry, and crying babies!
Jamie Lee and Ross finally had a welcomed dinner out on their own as Ross’s parents were minding the triplets. They were having a conversation about their future and the future of the triplets. College expenses ($100,000) and their eventual retirement seem to be a major worry of the both of them. They both have dreamed of owning a beach house when they retire. That could be another $350,000, thirty years from now. They wondered how they could possibly afford all of this.
They agreed that it was time to talk to an investment counselor but wanted to organize all of their financial information and discuss their family’s financial goals before setting up the appointment.
Questions
Using the formula for determining the amount of growth investments investors should have, how much of Jamie Lee and Ross’s assets should be allocated in growth investments? How should the remaining investments be distributed and what is the associated risk with each type of investment?
Focus on Personal Finance
ISBN: 978-0077861742
5th edition
Authors: Jack R. Kapoor, Les R. Dlabay Professor, Robert J. Hughes, Melissa Hart