Jane and Richard, a married couple in their mid- to upper-forties, have been building the $1.5 million they inherited about five years ago. Jane and Richard are very optimistic about the current market and want their portfolio to meet or exceed the stock market expectation of the last year. They have asked your firm to suggest a personal wealth portfolio commensurate to the market and risk level. The clients are open to various investment options to achieve their goals and expectations. In addition, the clients want to maximize wealth including offshore investment options or other strategies to minimize U.S. tax consequences. Their goal is to have sufficient funds available to maintain their current lifestyle of $200,000 per year (adjusting for inflation and not including pension or social security benefits) when they retire in 10 years. They also want to provide for their 14-year-old daughter Mary's upkeep and schooling should something happen to them. Specifically, the following critical elements must be addressed:
Briefly outline a typical asset structure and the intended investment security options (stocks, bonds, mutual funds, retirement accounts, and other alternative investment types) and characteristics for an optimized portfolio with the consideration of tax strategies and tax implications. Explore various ideas and strategies such as efficient frontier, asset allocations, risks, investment discipline and constraints, diversification, historical returns, real estate, business cycle, and time horizon. For example, your discussion should test your knowledge and understanding by explaining the investment types, expected returns, and related risks. This assignment will build or lead toward part of your portfolio if organized, articulated, and supported appropriately.
The paper must be 2-3pg Microsoft Word document with double spacing, 12-point Times New Roman font, one-inch margins, and at least 3 sources cited in APA format.