Reference no: EM131435316
Taylor, 50 years old, recently retired and received a 800,000 payment from his employer for early retirement incentive and exercising company stock options. Taylor’s wife died after a long illness, which resulted in high medical expenses which forced Taylor to liquidate his entire investment to satisfy the expense. Taylor has a living expense of $24,000 and will rise with inflation (about 1 % per year). Tax rate is 30%. Taylor has expressed that he wishes to never work again. Taylor’s mother, Renee, is 72 years old and has poor mental health. She has relocated to a long-term care facility. Renee’s expenses total $42,000 per year and she has a pension income of 18000. She has no investment or assets of value. Taylor, who has no siblings, must cover Renee’s income shortfall. Taylor’s investment advisor, Sarah, has made the following investment policy statement for him: Taylor Investment Policy Statement: Return Objective: Taylor’s main return objective is to the income requirement of 24,000. Taylor needs a return objective of 3% (24,000/800,000) per year Risk Tolerance: Substantial asset base and low return requirement provide ample resources to support an aggressive growth-oriented portfolio Time Horizon: Taylor has a single long term horizon when take into consideration.
Short Answer Questions:
1. What are Taylor’s main objectives also return objectives? Do you think Sarah’s assessment is accurate?
2. What do you think it’s Taylor’s risk tolerance (in term of above average, average, below average)? Do you think Sarah’s recommendation for aggressive growth-oriented portfolio adequate?
3. What type of time horizon does Taylor have?
Prepare a table of contents
: Prepare a table of contents as an outline for your communications manual. Include at least five sections (communications topics) in the manual. Each section should have a heading and subheading.
|
Evaluate risk management techniques
: In this assignment, you will compare and evaluate risk management techniques from experts in the field. Go to the Ashford University Library and find one article by Dr. James Kallman. Dr. Kallman, an expert in the field of risk management, has wri..
|
Describe step you would take in conducting actual assessment
: What preliminary information would you gather before conducting the needs assessment? Provide a rationale for your decision. Describe the various steps you would take in conducting the actual assessment.
|
Challenges of motivating criminal justice personnel
: Impact of politics and/or the media on the operation of criminal justice agencies challenges and theories of motivating criminal justice personnel
|
What are taylor main objectives also return objectives
: Taylor, 50 years old, recently retired and received a 800,000 payment from his employer for early retirement incentive and exercising company stock options. Taylor’s wife died after a long illness, which resulted in high medical expenses which forced..
|
Calculate the maximum investment funds
: Segura Corporation predicts that earnings in the coming year will be $45,000,000. There are 24,000,000 shares and Segura Corporation maintains a debt-equity ratio of 3. a) Calculate the maximum investment funds available without issuing new equity...
|
Discuss the role that technology and computer based training
: Discuss role that technology, computer based training, webinars, etc, play in determining the cost effectiveness of training programs. Explain the steps or guidelines which can be utilized to help guide successful implementation of a training progr..
|
Compare and contrast two competitive strategies
: Compare and contrast two competitive strategies, which are a best-cost provider strategy and launching strategic offensives to improve a company’s market position strategy. Discuss resources needed to develop and implement.
|
Importance of the risk and return balance
: Critically reflect on the importance of the risk and return balance. Consider the following:
|