You are a financial advisor and a new client has just walked in your door. This client, Chris, just recently won a jackpot playing slots in Las Vegas and earned $200,000 after taxes. Chris is 36 years old and wants to use this money for his retirement. Chris is an impulsive spender and knows that he will be unable to save any money from his future paychecks, so he is very dependent on the $200,000 for his retirement. He would like to retire at 65 years old.

Your assignment is to come up with a portfolio for Chris for the next 29 years. Your submission should include a breakdown of how much Chris has and in which investment for the next 29 years (by investment type. Ie - IRA, Roth IRA...then in your IRA, how much is large cap stock, small cap stocks, junk bonds, etc.). It should also include the final amount Chris will have at retirement. Consider risk, taxes, and other concepts discussed in class. Use 15% as a capital gains tax in the beginning and then adjust to 20% as needed. Make sure to note your assumptions about rate of return for each investment.

One area that many groups get tripped up is how to structure the portfolio. Before getting started I recommend taking some time to think about a logical way to present the information. Before jumping in to help, I'd like your group to really think about the best way to structure the assignment.

-First, the assignment is to come up with investments for the next 29 years. I should be able to see anything that shows what the money is being invested in year to year. There should be a column for unrealized gains, realized gains, sales, capital gains tax, or purchases.

-The entire $200k will work better and would make much more sense with a Roth IRA. Also, include where the yearly amount is being pulled from. Just leaving it in the bank for X years waiting to put it in an IRA wouldn't make much sense.

-When thinking of what to invest in, don't over think it and remember that portfolios need to be rebalanced over time to reflect changes in risk tolerance. But don't go too crazy with rebalancing, 2-3 times in a 29 year time period should be sufficient.

I recommend using MS Excel for your submission.