Financial Magicians is a financial advisory firm. They currently manage money for various types of clients. During a meeting with a prospective client, Mr. Ernie Els, they collect the following information:

Mr. Els is 35 and playing professional golf. His spending requirements are expected to increase with the rate of inflation, which is 4 % annually.

Mr. Els estimates that he will spend $400,000 per year. A golf injury has reduced his potential future earnings. Thus, he expects to earn $0 per year for the next 15 years.

Mr. Elss asset base is $4,500,000.

Mr. Els has serious doubts about owning international equities since he has had a bad experiences with them in the past. He is also rather averse to volatile returns. He really doesnt like seeing his assets decrease in value.

Mr. Els would like to donate $100,000 to a cancer charity in 3-months.

Mr. Els has a 35 % tax bracket on all capital gains, income, and dividends.

Mr. Els will not own alcohol-related stocks, since his uncle was an alcoholic.

Mr. Els plans to retire at age 50 (15 years from now), where his income needs will remain the same.

Create and justify an Investment Policy Statement for Mr. Elsbased only on the information provided in the introduction above. Please list objectives names and constraints.