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 employee 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 questions :

For each goal, specify if it is a short-term goal (five years or less), an intermediate term goal (5-10 years), or a long term goal (over 10 years).Also provide, a brief discussion for the type of investments will be suitable for that goal.The investment categories that can be used for the goals are:Stocks, Bonds, and Short-term (Cash) Investments.More than one investment category may be appropriate for a goal.