Question
Can you help me how should I approach this assignment and what would be a suitable portfolio for A. Profile Ms. A is a single
Can you help me how should I approach this assignment and what would be a suitable portfolio for A.
Profile Ms. A is a single 25-year professional, a US citizen who graduated from Hult 3 years ago and has been working for a multinational pharmaceutical company in New Jersey for the past 3 years. She is a product manager for one of their new products and has been quite successful in her line of work. She, however, is keen to change jobs for a position of greater responsibilities and higher salary. She would prefer to stay in the NY-NJ area but is willing to consider relocating to another part of the country. She lives with her 74-year mother and helps provide financial support to her. They live in a rental. Her annual gross salary today is about $125,000 and she has great company benefits, including a 401K plan to which she has been contributing 7% of her annual salary for the past 3 years and the company puts in another 50% of her contribution. Her 401K is a 100% in larger cap stock and the company portion will be fully vested in 2 years. She has been saving about $20,000 per year which she wants you to invest in a portfolio to help achieve her financial goals. Her primary financial goals as she has explained to you are:
1. Pay off her $150,00 student loan in 5 more years. She has been paying off $1000/month since she began working.
2. Save up at least $50,000 for a down payment on a first home in 5 years. She is permitted to draw from her vested 401K funds for a first home in the future.
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