Question 331789: How can I solve this and here is part of them problem the question and part of the answer i dont know if its complete or needs more and I apreciate the help.
Cliff Swatner is single, 33, and owns a condominium in New York City worth $250,000. Cliff is an attorney and doing well financially. His income last year exceeded $90,000, and he has sufficient liquid assets to supplement his condominium and other tangible assets. Several years ago, Cliff began investing in stocks and bonds. He made his selections on the basis of articles he read describing good investment opportunities. Some have worked well for Cliff, but others have not. Cliff has never taken the time to evaluate his portfolio performance, but he feels it isn't very good. Cliff currently has about $90,000 invested. He has been dating a woman lately and hopes to marry her in three years, at which time he will need $20,000 for marriage expenses and a honeymoon. Cliff's only other objective is to accumulate funds for retirement, but he does not have a specific dollar target for this goal. Cliff feels that he has a moderate risk-tolerance level.
Question
Construct a portfolio for Cliff, limiting your selections to 5 mutual funds (assume that he sells his current stock and bond holdings). Make sure your plan indicates specific dollar amounts for each portfolio component. Make sure your plan also explains your selections for each portfolio component. Visit an investment firm that deals in mutual funds, such as, Vanguard.com, AmericanCentury.com, Fidelity.com, etc. and select 5 mutual funds that will diversify Cliff’s portfolio. Record the fund name, ticker symbol, 5 year average annual returns (can use 3 year if 5 year is unavailable), the amount to be invested in each fund, and the amount returned in 3 years using the 5 years average annual return for the wedding.
The work I have done
Cliff feels that he has a moderate risk-tolerance level. Cliff is young unmarried. Therefore he has considerable investment needs. His main protection need is to protect his earning against disability resulting from injury or sickness. He has this short-term (after 3 years) need for marriage. His wish is also to take a long term saving plan for retirement. His portfolio will be of Moderate risk portfolio:
30% Equity Funds - $30,000
30% Government Bond Funds - $27000
20% Growth & Income Funds - $18000
10% Index Funds - $9000
10% Growth funds - $6,000
Answer by mvvr1(1)   (Show Source):
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