Jack And Klein

This case documented the key financial goals and objectives of four clients and describes the strategies that the manager should employ to meet these objectives. For these four clients’ main asset mix and goals, I can summarize it as following: Bob miller has no short-term requirements. His portfolio includes 70% equities, Canadian oil and gas sector. Mary Swanson has no short term liquidity needs. She has higher investments in equities than bonds, 60% equities and 40% bonds. The goal for Jack & Kelly Klein is to achieve high growth to save for retirement. Their portfolio includes 85% equity and 15% bonds. They accept to take risk of an equity oriented portfolio because they want to hold some safe investment alternatives as bonds. Herb & …show more content…
Because the recession is an economic cycle, it will recover after some times. He should alter the investment in equities of banks or any other financial institutions whose condition is vulnerable due to credit crunch. Also, increasing the diversification in his investment portfolio will offset the fall in stock market. For Mary Swanson, I suggest that half of the funds from bonds can be shifted to government bonds providing a more secure continuous source of income. In addition, Mary should be optimistic that in the years to come, the market conditions will improve and the stock price will increase improving chances of capital gains. For Jack & Kelly Klein, it is recommended for them to have diversified portfolio in order to reduce risk. They can allocate some proportion of their total investment to gold. Further, investments in dividend fund and Treasury bond can be done so as to avoid market volatility and to cover at least inflation rate. For Herb & Barb Nichols, they should invest more in dividend funds to reduce the tax burden. They’d better to focus on investing in bonds and other money market securities. What’s more, they should be convinced to do away with their trend