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FIN 340 Milestone One
Fundamentals of Investments (FIN340)
Southern New Hampshire University
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Running head: Milestone One
3-1 Final Project Milestone One: Client Analysis Samantha Sammartino Southern New Hampshire University FIN 340: Fundamentals of Investments 13 November 2021
Milestone One I. Client Analysis: Clients’ financial documentation is analyzed, as well as their future goals are discussed to best assess their risk tolerance and investment objectives. This will help formulate a plan to best meet their return objectives within their time horizons and risk tolerance. A. Client Information 1. Ezra has a high-risk tolerance. He is young, has a long-time horizon, is willing to lose 30-40% of his investment capital, and does not need the investment money to pay any current bills. He earns about $70,000/ year in salary, which covers all of his costs of living and allows his to put $1,000 into savings each month ($350 into his 401K and $650 into his savings). Ezra recently received $60,000 but plans to spend up to $20,000 within the next two years on a proposal and wedding. He also would like a “decent sized cushion” in the bank for emergencies, such as losing his job. Some liquid assets Ezra currently has includes the $60,000 he recently received, $20,000 in cash savings, and $15,000 in a 401K, which is 100% invested in the stock market. 2. Jacob and Rachel have a moderate risk tolerance. They’re in their 50’s, live well below their means, but are planning to pay for two more college tuitions out of pocket and get ready for retirement. They earn about $190,000 between the two of them after taxes and could still work part-time into retirement. They “can’t afford to take a big hit” to their portfolio this close to retirement, but still want to plan for more growth before then. The couple plans to partially retire in eight years and fully retire in 13 years. Jacob and Rachel would like to earn at least 3-5% from their portfolio
Milestone One References: Little, K. (2021). Four investment objectives. The Balance. thebalance/four- investment-objectives-define-strategy- Smart, S., Gitman, L., & Joehnk, M. (2017). Fundamentals of investing (13th ed.). New York: Pearson.
FIN 340 Milestone One
Course: Fundamentals of Investments (FIN340)
University: Southern New Hampshire University
