Reference no: EM132896666

Mrs K is a recently retired 65 year-old widow from Brisbane, Australia with four adult children (aged 40, 38, 36 and 34). She rents a 2-bedroom townhouse and lives alone, has a simple lifestyle, and no income beyond what her conservatively invested pension fund of $1 million produces (approx. $30,000 per annum) and a government support payment of about $10,000 per annum. Note: Mrs K's pension fund was significantly bolstered by a significant compensation payout upon the passing of her late husband in the workplace. Since losing her husband, Mrs K has understandably been very upset by the traumatic experience and is worried about her mental health. Mrs K has become distant from her children, extended family, friends and hobbies, and spends most of her time at home fretting about how she is going to manage her finances. She is particularly concerned about the implications of her pension fund in terms of estate planning and leaving an inheritance for her adult children. Mrs K is also a quiet, cautious person, who is often set in her ways and stubborn in her opinions at times.

In terms of Mrs K's situation, discuss how her financial wellbeing is affecting her investment decision-making and behaviour and how she could improve it.