Mark and Andrea Smith live in Cherry Hill, NJ and are reviewing their financial plan. The Smiths, both 53 years old, have one daughter, 18 years old. With their combined after-tax salaries totaling $100,000 a year, they are able to meet their living expenses and save $25,000 after taxes annually. They expect little change in either their incomes or expenses on an inflation-adjusted basis other than the addition of their daughter's college expenses. Their only long-term financial goal is to provide for themselves and for their daughter's education. The Smiths both wish to retire at age 65 . Their daughter, a talented mathematician, has been accepted to college. Annual tuition and room and board will be at least $50,000, and she would also like to attend graduate school that will cost a similar amount annually. The Smiths' personal investments total $600,000 and they plan to continue managing the portfolio themselves. They prefer "conservative growth investments with minimal volatility." One-third of their portfolio is in the stock of Andrea's employer, a publicly traded technology company with inconsistent results and a very leveraged balance sheet. The shares have a very low cost basis for tax purposes. The Smiths, currently taxed at 30% on income, and 20% on capital gains, have accumulated losses from past unsuccessful investments that can be used to fully offset $100,000 of future realized gains. In 12 years, Mark will receive a distribution from a family trust. His portion is now $1.2 million and is expected to grow prior to distribution. Mark receives no income from the trust, and has no influence over or responsibility for its management. The Smiths know that these funds will change their financial situation materially, but have excluded the trust from their current financial planning. Construct the objectives and constraints portion of an investment policy statement for the Smiths, addressing their return objective, risk tolerance, time horizon, liquidity requirements, tax concerns, and any unique circumstances