TOPIC: Grandma, Investing, \& Asset Allocation Grandma generously gave you a $15K non-taxable gift of cash this year. She requested that you keep a portion for your Emergency Fund and invest the rest in individual stocks, stock ETFs, and bonds. 1. Explain to her in simple terms, the difference between a stock and a bond. 2. What is your Asset Allocation (\% stocks and \% bonds/cash)? - How much of Grandma's gift will you invest (out of \$15K)? - Are you a risk taker or are you more risk averse? - Is your financial planning horizon short term, intermediate, or long term