1.Roger Black is your client and is coming to you for advice regarding his mutual fund portfolio.

Roger is 34 years old and a marketing consultant for a small software company in Calgary.His annual income from his employment is $70,000 per year.He is single but plans to marry in the near future.

Roger Current Portfolio:

Mutual Fund

Amount

International equity fund

$45,000

High-Tech equity fund

$90,000

Canadian Mortgage fund

$10,000

Canadian equity fund

$15,000

Canadian money market fund

$5,000

Total:

$165,000.00

Roger describes himself as frugal.He currently rents a one-bedroom apartment as a car worth $10,000, his laptop and furniture.He has $25,000 in outstanding student loans and $2,000 in credit card debt.He pays off his credit card bill in full, every month.

Roger is currently focusing on paying down his student loan within the next five years and slowly saving money for his retirement.He considers himself knowledgeable about the financial markets and is currently fearful of his financial situation considering the latest volatility in the worldwide stock markets.Overall, he considers himself moderately risk-tolerant.

As a self-employed consultant, Roger has $15,000 to invest in his RRSP this year.

Roger is asking you advice about his financial situation which fund should he invest is $15,000 and should he change his portfolio to manage his concerns in the stock market.