Portfolio Allocation Plan

Client Profile| | | | age:| 28| gender:| womanly| family status:| Single| annual income:| $4,000| tax bracket:| 10%| home value:| $0| retirement:| $100,000| clients risk tolerance:| medium| time vista:| 30 yrs| goals:| yield 5% per year| constraints:| 1. The investment funds is $100 per calendar month; so the investment portfolio is hard to set in the rootage couple years. 2. Client is a foreigner, so the time horizon will be cut off if she cannot find a job here.| Advantages| The client can increase the month investment to $200 when she finds the job. And the client will graduate in 2011, so we assume that there will be $200 per month in 2012| Asset allocation externalise Overview According to the client file, we assemble that the client wants to invest money for retirement. This asset allocation plan is aimed to meet the goal of the client with a tolerable risk, which we considered to be medium, by investing to a well designed portfolio which is compound with cash, bond and equities in an aggressive approach.

Asset allocations: * Cash - 10% (+-10%) * Bonds - 15% (+-10%) * Alternative Assets - 5% (+-5%) * Equity - 70% (+-10%) municipal / International Exposure * Domestic stock 55% (+-10%) (Broken shoot into 30% large cap, 15% mid cap, 10% dispirited cap) * International 15% (+-10%)( this 15% include not besides the international stocks but also bond and REIT. It is suppose to be 10% stocks, 3% bond and 2% REIT ) Rationale Generally, the greater the capableness for long-term returns, the greater the risk of volatility. In request to sully the risk, it is critical that the portfolio provides an appropriate mix of investments. According to our portfolio which is heavily burden towards equities, it represents high risk, especially in the short-term, but could represent high potential long-term returns. While equities provide a higher level of risk, a long-term time horizon (30 years) provides us with a large... If you want to get a full essay, order it on our website: Orderessay

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