attempting to find appropriate investment selections for given individuals. Consider the following individuals:
- 65 year old widow with social security as only income and 300k retirement account.
- New small business owner at 28 with a 6 month emergency fund covered who is just starting to invest inside and outside retirement vehicles.
- Couple, both of whom are 45 with 12 year old daughter. Full time earners at 210k a year combined. 350k in retirement combined with emergency fund covered. Maxing 401k already. Willing and able to invest further outside of retirement funds.
- One individual or couple designed by the author whose personal situation differs from the three listed above.
The above scenarios are not “complete” pictures but are a good step in the process of completing topical financial plans. State a few investment products that may be appropriate as well as some that may not be as well as why this is the case. Consider at least one other area of financial planning (insurance, tax, estate planning, general topics, retirement planning) that may have an effect on investment decisions.
The successful submission will clearly and concisely describe suitable investments for the scenarios listed based on the limited information. (Consider that these “may” be appropriate since we do not have all client information at this time.) Focus on suitability rather than technical features of specific products.