Financial Planning Case

Details about the client…1. He is 65 years old2. Risk averse3. Has low risk tolerance4. Wants capital preservation5. His wish list…He would love to see a 7%

return over the next 10 years6. Just retired

Facts

The client has money coming in from his company pension plan

He also collects Social Security benefits He has two 401Ks…(see the next pages for

details)

First 401K

Following are the Ticker symbols and allocations currently in his first 401K:

1. VUSXX (5%) – This is a money market fund2. VFSIX (25%)3. PTTRX (20%)4. VIIIX (10%)5. LLPFX (5%)6. GGOIX (5%)7. DFSVX (10%)8. TCMSX (5%)9. BIIEX (10%)10. WIEIX (5%)

Second 401K

Following are the Ticker symbols and allocations currently assigned in his second 401K. These funds are privately held with TIAA-CREF (http://www.tiaa-cref.org/).

CREF Stock (20%)CREF Growth (20%)CREF Equity (20%)CREF Global Equities (20%)CREF Bond Market (5%)CREF Money Market (10%)CREF Social Choice (5%)

Deliverables

Put together a really professional financial plan. Make sure that your asset allocation percentages make sense given the investor’s interests, constraints, and objectives.

You should be able to provide at least three professional documents to your client. One document for your recommended mutual fund mix and one document for each of the 401Ks. For your recommended mutual fund mix and each of your client’s 401Ks, provide a summary showing the funds by name, category, asset allocation percentages, trailing returns, and a summary of the weighted average returns. In addition, include a pie chart illustrating the fund breakouts. Note: The asset allocations for each 401K are provided. However, you must determine a strong asset allocation mix for your recommended financial plan based upon your clients interests, constraints, and objectives.

Make sure that each page has a title at the top indicating which 401K you are speaking about and your recommended fund mix.

Thoughts and Considerations

Think about what will make your handout, research, model, and recommendations look professional.

If the work you hand in is not professional in every way, your client will find a more professional firm to do business with and you will receive deductions in your grade.

Your final grade will be based upon how well you do in each of the following areas:

– Model development (40%)– Mutual Fund research – 45 funds (40%)– Client research – case (20%)