Matt and Raquel are in their late forties. They have 3 children that are all living on their own. They both are employed full time. Due to some recent job changes and a few family emergencies, they dont have a lot of savings in their retirement accounts. Matt has a risk tolerance score of 35 and Raquel has a risk tolerance score of 53. They would not like to work during their retirement years and are concerned about their current retirement savings accounts. They had a friend tell them they needed to invest heavily in some high paying alternative investments that he thinks will payoff big time in the next 5 to 10 years. They are not totally sure what to do now.

1. Identify the risk tolerance level of the individual(s). Describe what that means for their investment choices. (At least 3 sentences)

2. Recommend an investment portfolio based on that level of risk tolerance. Do this by suggesting how much of the investment pie should be devoted to each of the following: Cash and Cash Equivalents, Bonds, Stocks, Real Estate, and Alternative (or very risky) investments. Example: Cash 5%, Bonds 35%, Stocks 45%, Real Estate 14%, Alternatives 1%.