Scenario: You are to advise a client about how to best invest $50,000 for retirement. The client is a married couple, ages 35 and 34 and they have $50,000 to invest for retirement. They can afford to save an additional $250 per month for the next thirty years. You do not need to make recommendations for each spouse separately. Treat them as one client or family.

You are to recommend an asset allocation that is appropriate for the next five years. Be sure that each asset class (category) gets a percentage that is appropriate for their age risk tolerance. They have moderate risk tolerance. Within each asset class be sure to recommend a variety of assets that gives adequate diversification. It can be comprised of ETFs, mutual funds, bonds, cash, T-bills, real estate, precious metals, commodities, and alternative investments. Give the reasons for choosing each asset class and the investments within the asset class. You do not have to choose a bunch of individual stocks or bonds to accomplish this. You can make the appropriate ETF recommendations to achieve diversification.