Silvia Ho is the operational manager of a multinational industrial device company

Silvia Ho is the operational manager of a multinational industrial device company

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1.Introduction My client Silvia Ho is the operations manager of a multinational industrial device networking corporation. She has also been an award-winning real estate agent for over 20 years. As an operations manager, her annual salary is between $150,000 and $20,000 in bonuses. Silver is now 55 years old who has never married and has no children. She owns three houses and were all paid in cash, two of them are for investment and rented out at $2000 each. For living expense, she spends approximately $2500 per month, and she would spend around $5,000 on travelling on vacation each year. She plans to retire at 65 which are 10 years from now. She wants to keep working and contributing because she is solely responsible for creating her own retirement savings. She is most concerned about health care, she knows if she become ill, injured or disabled she would need to have savings and/or insurance to continue to pay her bills. For investing experience, Silvia was an active real estate investor, and has been trading stocks and bonds for many years. Therefore, her risk tolerance is higher than most people in her age group. She engaged in active online stock trading and also invests in the foreign exchange market such as Euro and RMB. She is a sophisticated investor and well prepared for the market’s fluctuations, whenever price drop she seize the opportunities that come in her way. However, she has lost $300,000 in the dot-com bubble 10 years ago; she is then more careful with her investment. She wants to contribute more of her investments to securities with less fluctuation such as cash and bond as she get older. She believes this can help insure the money is available when she needs it. The asset allocation I have chosen for Silvia is 60% in stocks, 30% in bonds, and 10% in cash.
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Since her goal is to pursue growth and she is willing to take on some market risk, I allocate large amounts of her assets into growths stocks. As I mentioned she needs income to continue pay bills; therefore, I placed 30% in Bond because it is a fixed interest security. The remaining 10% in cash can be invest in money market fund such as U.S Treasury bill or CDs that mature in one year or less. 2. Stock Sector weightings Sectors are base on what companies actually do, it helps investors and investment professional more easily compare and understand the sector exposures of mutual funds and portfolios. Some sectors get "over-" or "market-" or "under-" weighted - which means that the analysis recommends that more, or the same, or less emphasis, of the industry sector at particular times should be held in your portfolio. The stock market is divided into ten specific industry sectors, Consumer Discretionary, Consumer Staples, Energy, Financials, Health Care, Industrials, Information Technology, Telecommunication Services, Materials, and Utilities. Materials
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Silvia Ho is the operational manager of a multinational industrial device company

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