Question
What are the constraints (Liquidity, Time horizon, Taxes, Legal and regulatory environment, Unique Circumstances) when writing an IPS? Mary Smith, an unmarried 55year old school
What are the constraints (Liquidity, Time horizon, Taxes, Legal and regulatory environment, Unique Circumstances) when writing an IPS?
Mary Smith, an unmarried 55year old school teacher, wants you to manage her nest egg which consists of $500,000 in savings. This sum is in several savings accounts at local banks. She says she doesnt really trust the School Districts pension fundtoo many gyrations, so she has chosen not to participate in it. Mary loves teaching and wishes to retire at age 70. She believes she will follow the lead of her mother who was90when she passed away. She will be perfectly happy with a modest retirement income of $60,000 per year(from her future portfolio), supplemented by her Social Security, projected to be about $15,000 per year. She has expressed a wish to leave $1,000,000(adjusted for future inflation)of money to her niece, whom she adores, when she passes away. She does worry a bit, though, about this inflation thing that she heard about on a recent 60 Minutesshow. She can probably manage to save another $5,000 per year until she retires.
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