1) Jeremy Diamond, Age 35 has been working as a corporate lawyer for Simon and Simon PA for the past two years. His firm offers a retirement progre not been contributing to over the past two years. Realizing his mistake, he now wants to begin contributions with a goal to retire at age 65. a) What Asset Allocation percentages might Jeremy consider for his 401k based upon his age? Your Asset Allocation must equal 100%.
Stocks Bonds Cash
2) Emma Johansson, Age 53 is looking to invest for her future. She is a very conservative investor, and does not like market fluctuations. In 2008, as tt she took her life savings of $100,000.00 and placed it in a safety deposit box. Realizing that she must save more to fund her retirement, Emma hopes • save $300 a month from her job as an Administrative Assistant. She has been with her firm for 20 years and expects a $1,500 pension when she retire
a) What do you recommend her Asset Allocation to be for the $300 each month she plans to invest? Results must total 100% Stocks Bonds Cash
b) What should Emma do with the $100,000 she has kept in her safety deposit box?
3) Ingrid Thompson, 28 years old, has just inherited $200,000 from her Uncle John. Ingrid is fully aware that this gift will help her payoff her $22,000 in down payment for the new condo she has been preparing to purchase. She wants to invest $100,000 of the inheritance towards her retirement. What Asset Allocation model should Ingrid consider for her $100,000? a) Stocks 20% , Bonds 35%, Cash 20% b) 70% Stocks, 25% Bonds, 5% Cash c) 40% Stocks, 40% Bonds, 20% Cash d) 90 Stocks, 0% Bonds, 10% cash
4) David Nichols, age 82 has not reviewed his investments in years, and realizes that his entire $100,000 he has left is invested in two stocks, ATT anc which he started receiving in 1997 is $1,675 each month. Though David lives a simple life, his health has declined in the past year, and he now must d medicine. His medicine is $300 each month. What should David do with his $100,000 investment?
5) The DJIA (Dow Jones Industrial Average) has declined over 8% over the past 3 months. During this period Maggie’s investments have declined over should do?
6) You own $80,000 worth of Facebook (FB) stock which represents 50% of your entire investment portfolio. Facebook has gone up $3.00 per share s not certain that the stock can continue going up. Your friend, Fred says to sell Facebook and use 50% of the proceeds from the sale to buy Godaddy to buy Shake Shack (SHAK) both recently went IPO. Your other friend James says to purchase more Facebook stock (FB), as it is certain to go up as r% very popular. What should you do?
7) Janice Williams age 68 is a conservative investor who has an asset allocation model of 35% percent stocks, 45% bonds, and 20% cash. Which of th bond funds that might be appropriate for Janice to invest? Circle all that apply. a) A stock fund that invests heavily on companies that have been open less than 3 years b) A bond fund that invests primarily in investment grade bonds with a maturity of 3-5 years. c) A non-investment grade bond fund that invests in bond with a maturity date of 10-20 years. d) A stock fund that invests in the S&P 500. e) A target date 2030 fund. f) A high yield non-investment grade bond fund
8) If you wanted to own stocks that were in different industries, which of the following would you choose to diversify you’re investments? a) American Water Works, Wells Fargo, Microsoft, Valero b) Verizon, Comcast, ATT, Pfizer c) Chase, Ford, Bank America, Microsoft, Delphi Automotive d) Apple, Target, Sears, Gap, Exxon
9) Investing small amounts in a diversified tax deferred portfolio over many years can build into a large next egg that can fund your retirement. Which c aspects to consider over the course of your investment timeframe? Circle all that apply a) Rebalance your portfolio at least once every five years. b) Systematically invest each pay period with little regard to the daily market fluctuations c) Periodically analyze your investment strategy, and asset allocation. d) When life changes occur, changes to your investments are not normally needed. e) The stock market is always the best investment f) Your primary residence will continue to rise and will fund your retirement years from now.
10) Life may throw you a curve ball from time to time. Why should you be financially and professionally ready if this happens?