John Stewart Investor Description: Individual; 56 years of age, in good health Asset Base: $13 million Desired return or investment goal: Leave a $15 million trust for his 3 children. Annual spending needs: $250,000 rising with inflation Annual pre-tax non-investment income: $125,000 in consulting income for the next 2 years resulting from the sale of his company. Ability to generate additional income: None Inflation: Expected to be 3%/yr on average. Risk considerations: Impulsive, opinionated, successful with large bets in his business career, believes success depends on taking initiative. Liquidity requirements: $1.5 million immediately for home renovation. $2 million in taxes due in 9 months. Time horizon: Long-term except for liquidity concerns. Tax concerns: Income taxed at 30% and dividends and capital gains taxed at 15% Legal and regulatory factors: None Unique circumstances: None Based on this brief client profile, discuss how the following issues impact the client. 1. Willingness to accept risk 2. Ability to accept risk 3. Risk tolerance 4. Liquidity requirement 5. Time horizon 6. Overall time horizon 7. Tax concerns 8. What are the appropriate risk objectives? 9. What are the appropriate return objectives?