Salt Lake City Olympics Scandal
Essay Preview: Salt Lake City Olympics Scandal
Report this essay
My Choice of Investments for Cliff
First off I feel that Cliff was lacking in having a diversified portfolio and he has not reorganized his portfolio. He is going to be getting married in about 3 years and according to what he has told me he needs at least $20,000 for the wedding and honeymoon.
I went to the Charles Schwab website and looked up information about organizing a portfolio for Cliff. There is a test that needs to be answered on this web site and I did take that test, it shows Your Time Horizon and Your Risk Tolerance. The first two questions have to do with Your Time Horizon and the next questions 3 through 7 deal with Your Risk Tolerance.
The answers that I came up with for Cliff are as follows:
1. I plan to begin withdrawing money from my
investments in:
Less than 3 years 1
3-5 years 3
6-10 years 7
11 years or more 10
2. Once I begin withdrawing funds from my investments,
I plan to spend all of the funds in:
Less than 2 years 0
2-5 years 1
6-10 years 4
11 years or more 8
Subtotal: Time Horizon Score
Enter the total points from questions 1 and 2.
Time Horizon Score: _18 points
The points were over 3 therefore I had to answer the next set of questions and they are as follows:
SECTION 2: RISK TOLERANCE
3. I would describe my knowledge of investments as:
None 0
Limited 2
Good 4
Extensive 6
4. When I invest my money, I am:
Most concerned about my
investment losing value 0
Equally concerned about
my investment losing or
My Choice of Investments for Cliff
gaining value 4
Most concerned about my
investment gaining value 8
5. Select the investments you currently own or have
owned in the past with the highest number of points.
Circle that number.
Money market funds or
cash investments 0
Bonds and/or bond funds 3
Stocks and/or stock funds 6
International securities
and/or international funds 8
Example: You now own stock funds. In the past,
youve purchased international securities. Your point
score would be 8.
6. Consider this scenario:
Imagine that in the past three months, the overall
stock market lost 25% of its value. An individual
stock