(5 Marks) William Elam recently inherited $750,000 in cash from his father's estate and has come to Alan Schneider, CFP, for investment advice. Both William and his wife Elizabeth are 30 years old. William is employed as a factory worker and has an annual salary of $50,000. Although he receives total health care coverage for himself and his family, he makes no contributions to his firm's defined benefit pension plan and is not yet vested in any of the company's other retirement benefits. Elizabeth is an early childhood teacher with a salary of $38,000. She has only very recently opened a tax-deferred 403b retirement savings account. Their four children are ages six, five, four, and three. They have a small savings account, no investments other than Elizabeth's meager retirement account, and credit card debt of $20,000. When interviewed, William made the following statements to Schneider: (1) With a family of six, our combined salaries just meet our living expenses. It would be safe to assume that both our salaries and expenses will grow only at the rate of inflation. (2) We do not intend to use our new wealth to improve our current lifestyle, but we may want to consider setting up a trust fund in the future for our children. (3) We would like the portfolio to at least earn enough each year to maintain its current value in real terms and then to help fund our retirement. (4) We also want to use our portfolio to send our kids to college and maybe pay for future luxuries, like a new home and travel. (5) I would like to trade securities like my friend, Keith, who is an experienced and successful investor. He told me that he holds stocks for no more than a month. After that, if he hasn't made a profit, he sells them. (6) Everyone I know is buying technology stocks, so I feel we should also. (7) My mother has the same portfolio she had a year ago. I can't imagine how you can make any real money that way. Besides, she hasn't taken advantage of any of the latest hot stocks. a) (2 Marks) Which investor type does William belong to? b) (3 Marks) List and justify William's planning objectives and constraints