You are an investment advisor.You and your team have just spent several hours speaking to your new clients, Jim and Ann.The couple has been disciplined over their saving years.They have accumulated $500,000 for investment in addition to their employer-sponsored retirement plans. While Jim is only 58, he has decided to retire early and spend his time playing golf.He does plan to do some consulting on the side.Ann, who is the same age as Jim, plans to retire in five years at which time they plan to take a dream vacation around the world.They would like to have $30,000 for this trip. After discussing risk and return with the couple, you determine that they are conservative but they understand that in order to make their retirement funds last that they will have to take some risk with part of the money.Since Jim and Ann are at retirement age, they are interested in income-oriented investments. Jim and Ann have met the investment prerequisites (ample insurance, adequate emergency savings, and no credit card debt).They hand you a check for $500,000 to open up their account.

Answer the following question :

For your new clients, provide the overall asset allocation for the portfolio.The clients' age and time frame for reaching the portfolio goals should be major factors in determining the asset allocation.While the portfolio has multiple goals, the asset allocation is for theoverallportfolio.It may be helpful to determine an allocation for each goal and build up to the overall asset allocation for the portfolio.

The investment categories that can be used for asset allocation areStocks, Bonds, and Short-term (Cash) Investments.Every asset category is expected to be represented in the portfolio.Discussionas to why this allocation was selected and why it is appropriate for your client(s) is required.If you would like to include alternative investments in the portfolio (for student experience), that is allowed but is limited to 5-10% of the portfolio. This assignment should only be about the Asset Allocation for the OVERALL Portfolio only.