You are to construct a portfolio for a client. The client is an unmarried 50 years old and her/his (state gender if you believe it impacts your decisions, omit if you do not believe it matters) goal is to retire at 66 years old with Social Security payments of $40,000 annually (Social Security is forecasting this as the actual annual income). The client is self employed, earns $80,000 a year after taxes as an independent sales rep., thus has no company pension to look forward to. The client has $300,000 in bank one year CDs now averaging 1.5% annual interest, and has $75,000 in an Regular IRA with Fidelity Financial in their S&P500 index fund. The client plans to invest $15,000 a year until age 66. The client's total retirement income will be from a combination of the Social Security payments and investment income. In discussions, the client said she/he has a moderate risk tollerance and wants to move to the beach in Florida after retirement. The client's St. Charles home can be sold today for $250,000, but a small retirement condo close to the beach in Florida will cost a minimum of $350,000 today. Being a single retired person aged in the mid to late 60s with an independent income, our client sees a life of entertaining new friends, so retirement income is important. The more income, the better. Consider: Today's macroeconomic environment, today's favorable and unfavorable market sectors, the appropriateness of growth vs. income now, the appropriateness of growth vs. income after retirement, timing the shift from the client's portfolio you first structure to the client's retirement portfolio. Please structure your report using the sections (with points) below

: 1. (15) Today's macroeconomic environment 2. (10) Client's investment needs now 3. (25) The portfolio you construct for your client now [be detailed as to debt (percent of portfolio, quality and maturity), equity (percent of portfolio, company names and research reasons for each company), and cash allocation (how much in dollar amount and why) (Why is the dollar amount of "cash" more important than the percent of portfolio?) 4. (5) What portfolio adjustments would you make at 55 years old? 5. (5) What portfolio adjustments would you make at 60 years old? 6. (25) The client's portfolio you construct right after retirement [be detailed as to debt (quality and maturity), equity (companies and research reasons for each company), and cash allocation (how much and why)]. 7. (10) How will your client selling the home in St. Charles at retirement and buying a more expensive condo in Florida affect your management of your client's portfolio? 8. (5) In your client's portfolio how did you structure a "lifeboat" for safety in case the economy has a disastrous change, i.e., exorbitant inflation, or ruinous taxes?