Reference no: EM132067040

Elizabeth Yeo,aged 60, is managing director of USX and plans to retire in one year. Yeo will receive a lump sum severance payment of $500,000 from the company and plans to close out her company 401K which is entirely invested in USX stock where she has currently about 35,000 shares. Yeo is widowed and has a son who is married and who has a high-level position at investment bank. Yeo maintain a money market fund currently value at 1.1 million and earns about 1.2% annually. she has a home, zero mortgage, currently valued at about 1 million and plans to continue living there , she also plans to begin to collect social security at the age of 62. her living expenses including maintaining the home, are about 80,000.00 a year. her living expenses are expected to grow at an annual rate of 3 % throughout her retirement period, which is expected to be 25 years given her families mortality history. you are requested to prepare an investment policy statement for yeo and make some investment recommendations.