Bill and Angela Thomas, age 56 and 58, just inherited $200,000 from a distant relative. They are now trying to assess how to invest the proceeds.

Time Horizon 5 years to retirement and projected normal retirement lifespan to age 90

Risk Tolerance Medium

Financial Situation:

• $100,000 in savings (RSPs and TFSAs)
• No pension plans, heavy debt burden ($600,000 mortgage @ 2%)
• Combined income of $100,000/year
• No emergency funds
• Cash Flow is tight each month

Family Situation - no children, ailing parent to support and lives in their house

Investment Knowledge low, and they generally prefer managed products

Tasks

1. Build a suitable Investment Portfolio (Asset Allocation and Product Level). Indicate the account types that you would recommend and allocate the $ accordingly (i.e. RRSP, TFSA, etc.).