ADMS 4501 Lecture 1: Asset Allocation- Review Question 1 - SOLUTION (R) (1)
26 Sep 2018
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Asset allocation review question 1 solution -revised. Lucie is a 62-year old retiree who recently became a widow. ,000,000 in investments, a home worth ,000 in richmond hill (mortgage free), and a. Lucie has not taken care of any of the financial planning to date and has come to you to get some guidance. Ideally, she would like to earn enough money from her portfolio each year to fund her current lifestyle (which includes lots of social events with friends, buying lots of nice clothes and travelling a significant amount each winter). She estimates these expenses will total ,000 per month. The ,000,000 is currently invested in ,000 of bce stock (her late husband"s former employer), ,000 in gics and the remainder in a variety of mutual funds (including investments in both bonds and stocks). In addition, both the cottage and home will require significant renovations over the next 5 years.
