An investor wants to save now and pay for a house in 15 years. Though they want to earn as much as possible in order to purchase a home, they are still somewhat risk aware because they lost a large sum in the 2008 Great Recession. They have $1,000,000 now that they want to invest and ideally, they want to have $1,500,000 for the purchase of this home. Additionally, they want to earn at least $25,000 a year in income every year starting now to help with living expenses.

Design a portfolio with an expected return that showing how it will annualize for the next 15 years. Additionally, please list the securities that will pay the income the investor needs. Build the appropriate portfolio that will meet these return requirements and risk parameters.

Thus, as a first step, build an asset allocation with (what you think are) the appropriate percentages to each asset class.

For example: Large Cap 50%, Small Cap 25%, Global Equity 25%, and the total will equal 100%

Additionally, calculate the expected return of your portfolio and the estimated income from your portfolio.