Your Dream Portfolio:

Client's age 28

Profession is IT

life goal: Upper middle level

Understanding your own attitude toward risk is very important when you are selecting investments for inclusion in your portfolio. This project should help you consider what you would do if you came into some money. You bought a state lottery ticket last month, and yesterday you learned that you won one million dollars after taxes. What would you do with the money? While there are certainly bills to be paid and things to buy, assume that you will have at least $800,000 to invest. What goals do you wish to achieve with these funds? State them clearly, develop an asset allocation scheme, and design a portfolio of stocks, bonds, tangibles, and/or limited partnership investments that you feel would be consistent with achieving your goals. Using current information and price quotations from the Wall Street Journal, local newspapers, and the Internet, create your own dream portfolio. Briefly explain the rationale for your asset allocation scheme and the reasons you included each specific investment in the portfolio. Point out any concerns or reservations you might have relative to the portfolio you created.