CASE A:

You have been contracted by a new client, Ashley Britana, 33 years of age, who just won the $1 million lottery grand prize. Ashley is very excited but confused because the lottery board has offered her several payout alternatives. She called you this morning to ask you to help her decide which one to accept.

Ashley's alternatives are as follows:

• $1 million today
• $1.25 million lump sum in two years
• $1.51 million lump sum in five years
• $2.1 million lump sum in eight years

Part A:Ashley's dilemma is whether to collect the prize money today or receive up to double the amount of money in the future. Which payout option should you recommend and why?

Your cousin, a stockbroker, advises you that over the long term Ashley should be able to earn 8-10 percent on an investment portfolio.

Part B:Ashley would like to put 18% into a retirement fund. Any suggestions for types of investments to help plan for her retirement?

Part C:Ashley would like to put 50 % of her winnings into starting a new business. Using your decision from Part A, decide what business Ashley should go into (consider what growth is expected over the next 5 years) , and what she would need to start the business in the US (filings, finances, assets needed, etc.).