Question
Christian and Maria Medina are both healthy. Christian is 40 years old and Maria is 35. They have one child: Jennie, who is 5 years
Christian and Maria Medina are both healthy. Christian is 40 years old and Maria is 35. They have one child: Jennie, who is 5 years old and attends public school. Christian has just started working as a marketing consultant with a mutual fund company, where he earns a salary of $60,000. For her part, Maria is an executive assistant and earned $36,000 last year. They both expect to consistently receive raises of 2% to keep up with inflation. They both feel secure in their new jobs and are confident that these raises will continue in the future. Christian is also a member of his employers defined contribution plan, to which he and his employer contribute 4% of his salary.
Questions 1. Describe your client's vision of retirement. (2 Points) 2. How would you deseribe their current financial situation? What about their personal situation (risk tolerance)?(4 Points) 3. Determine the hypothetical rate of return associated with the couple's current asset mix ( 8 points) 4. Using the: - information contained in the client profile - the rate of return from 1 above and - the retirement calculator Determine if the client is on track to reach his retirement objective. (5 Points) 5. Make an alternate recommendation to achieve the client's goals while remaining within the couple's investor profile. (4 Points) 6. Comment on their portfolio holdings (i.e. are there any investments that are inappropriate given their risk profile? If so, which ones? (2 Points) BONUS QUESTION: 7. Given the couple's current situation, do you have any other recommendations you would like to make to the coupleStep by Step Solution
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