William_Buffet_Investment_Policy - Investment Policy...

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Executive Summary Client Name: William Buffet Age: 30 Profession: Senior Account Executive at Coca-Cola Current Assets: William has a total of $500,000 in assets. Time Horizon: With 20 years to retirement and an expected 35 years in retirement, William’s has a 55-year time horizon. Overall Portfolio Expected Return: We expect a portfolio return that is 4 percentage points over inflation. Loss Limit: William could accept losing 15% in any single year. Over a five-year period, he could lose 5% annualized. Asset Allocation Lower Limit (%) Target (%) Upper Limit (%) Large-cap value stocks 20 25 30 Large-cap growth stocks 20 25 25 Mid/small-cap stocks 10 15 15 Mutual Funds 10 15 20 Bonds 10 15 20 Cash 5 5 10 Rebalance when portfolio exceeds the upper or lower limits. Investment Objectives Here are William’s objectives: 1. To retire in 20 years. 2. To be able to spend $70,000 per year, pretax, during retirement. 3. To make his assets last the rest of his lifetime.
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This note was uploaded on 09/08/2010 for the course BUS 172A at San Jose State University .

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William_Buffet_Investment_Policy - Investment Policy...

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