Generate a table of the investments you recommend with the following guidlines.

 

Your Aunt Rita is ready to retire after a 44-year career as a nurse. She will be 65 on April 1^st and desires nothing more than to move to Florida and live in a small condo on a beach (a two bedroom, so her favorite relative - you - can visit anytime). Agnes estimates that to live in Florida, she will need approximately $45,000 per year to live on. Her Social Security Check is estimated at the national average of $1,658 per month.

Your task? Using the Rule of 102 and her $475,000 in 401K savings, make a diversified investment portfolio that will allow Aunt Agnes to live out her dream. Then, make a simple writeup of your plan, noting why you chose to make the investment decisions you did.

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  • Agnes wants to live off of her social security payments, bond interest payments, and stock market gains.
  • A diversified stock index (your only stock market choice) has an expected return of 8%.
  • Note: The bond portfolio will consist of individual bonds but needs to be diversified. In the real world, that means at least 30 different bond issues across sectors, duration, and geography. For this assignment, there will be a minimum of 5 bonds (you can use more), and no one bond can be more than 25% of the total bond portion of her assets.
  • Do not worry about taxes.
  • Do not worry about inflation.
  • The table should show how she is to meet or beat her $45,000 annual income goal, showing ALL of her sources of income.
  • The table should clearly label which bonds you chose.
  • The table should be well formatted and cut and pasted into the Word document that you use to answer the questions.