Bonnie DuBois, a 60-year-old U.S. citizen, has just retired after a 35-year career in the fashion industry. Through a modest lifestyle, disciplined saving, and the help of a financial adviser, she has accumulated a $2,000,000 diversified portfolio. Over the last several years, the portfolio allocation has been gradually adjusted to only domestic large-cap stocks and bonds. She holds only investments she has thoroughly researched and continually looks for better, more definitive information. DuBoiss house has been paid off for several years and she does not intend to purchase another house. She has always led a modest lifestyle and intends to continue doing so. During her retirement, she will help support her son Barry, his wife Betty, and their three children (ages 14, 12, and 10). Barrys and Bettys combined salaries barely meet their living expenses. DuBois estimates she will need $60,000 after-tax in her first year of retirement and likes to keep 6 months of her living expenses on hand. She plans to continue supporting her son and his family by providing them with $30,000 after-tax over the coming year. Both figures are expected to increase each year at the general rate of inflation of 3%. She has informed Barry that at her death her portfolio will be gifted to a local museum with instructions to pay Barry and Betty a lifetime $20,000 annuity. In addition to meeting spending needs, she wishes to maintain the real value of her portfolio. DuBois is in the 25% marginal tax bracket.

2, Risk Objective

• Ability to take risk: (Any facts about this client that could increase or reduce her ability to take risk, why)

• Willingness to take risk: (Any facts about this client that could increase or reduce her ability to take risk, why)