Discuss additional personal information that McZhao should gather from Cree in order to properly advise this new client.

McZhao then focuses on Cree’s financial goals:

▪ Cree wants to fund university expenses for his three children, with the first payment starting in 10 years. Cree does not know what to expect in terms of college costs.

▪ Cree plans to retire at age 62 and expects to need $80,000 per year to fund his retirement lifestyle. He is concerned that an increasing level of medical expenses for himself and his  wife may reduce his financial assets.

▪ Cree expects to purchase an apartment building in three years and plans to use the rental income from this investment property to help fund his retirement needs.

▪ Cree’s wife enjoys donating to philanthropic causes. She currently donates $10,000 per year, but by the time Cree retires, she hopes to increase this amount to $30,000 per year.

▪ Cree collects antique furniture and budgets $15,000 per year for additions to his collection. He mentions that this year’s antique purchase will be his next large expense and currently has the highest priority of all his goals.

Henlopen McZhao is a private wealth manager. After a successful introductory meeting with Nescopeck Cree, she is meeting again with this new client to plan a wealth management strategy. McZhao seeks additional personal information from Cree.
McZhao learns that Cree is 45 years old and is currently employed as an attorney. Cree has a number of specific financial goals that he wishes to achieve in the future but has no particular return objective for his portfolio. Because he has been investing for 20 years, Cree is comfortable with moderate levels of market volatility. His employment provides for his current expenses, so Cree’s liquidity requirements are minimal. Cree prefers to have his environmental and social concerns reflected in his investment choices.