Life Stage Investing The purpose of this exercise is to apply the thinking behind how to pick an asset allocation appropriate for different investors. The appropriate asset allocation considers investment horizon, intended use of investment proceeds, and investor risk tolerance Required: Assume each of the following investors is saving for retirement. Use the following funds to create a retirement portfolio Internationa International Bond Market Index Fund IWL small cap index fund scZ Large Cap ValueSmall Cap Value International index fund EFA large cap index fund DWM index fund BONDX index fund Index fund JKF VSIIX Answer the following questions for each investor. 1. How long will the investor have before reaching retirement and how does this investment horizon influence the type of assets the investor can include in a portfolio for achieving retirement goals? Create a possible portfolio for each investor using the funds listed above. What proportion of domestic stocks, international stocks, and bonds is appropriate for the investor's circumstances? Why did you pick the asset allocation that you did? 2. Portfolio 1: A newlywed couple in their 20s Portfolio 2: A couple in their 40s with two incomes and two children Portfolio 2: A couple in their 50s whose children are grown and on their own