Life Situation	Financial Data
Pam, 43 Josh, 45 3 Children, ages 16, 14 and 11	Monthly income	$4,900
	Living expenses	$4,450
	Assets	$262,700
	Liabilities	$84,600
	Emergency Fund	$5,000

With three dependent children, the Brocks are assessing their life insurance. Pam has $5,000 of coverage. Josh has life insurance coverage equal to approximately eight times his annual salary.

With approximately 20 years to retirement, Pam and Josh Brock want to establish a more aggressive investment program to accumulate funds for their long-term financial needs. Josh does have a retirement program at work. This money, about $110,000, is invested in various conservative mutual funds.

In addition, the Brocks established their own investment program about four years ago, and today they have about $36,000 invested in conservative stocks and mutual funds. In addition to their investment program, the Brocks have accumulated $11,000 to help pay for the childrens college educations. Also, they have $5,000 tucked away in a savings account that serves as the familys emergency fund. Finally, both will qualify for Social Security when they reach retirement age.

Q4. Describe an investment portfolio (asset types, allocation, risk-return) that you would recommend for the Brocks.