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B. Hypothetical Investors
Grandma & Grandpa
Their names are Helen & Vinny. Helen is 75 and Vinny is 72. They have both been retired for over 10 years.
They own a condominium in Florida. They live on their social security income and the money they have save over the years.
They have a VERY low tolerance for risk and can't afford to put their capital at much risk. They have a brokerage account
with Woodstock Discount. They withdraw dividend and interest payments monthly from their brokerage account in order to pay their bills.
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Brokerage Account: They hold a traditional brokerage account with Woodstock Discount. They asked us for advice and we
told them to build the following portfolio. It pays them regular monthly income and provides relative safety as the
money is invested in highly rated bonds funds.
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10% Money Market Fund. |
We always recommend that 10% of savings go into a money market fund. Emergencies come up, be prepared. |
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20% Corporate Bond Fund |
Investment grade with at least an average credit rating of 'A'. |
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70% US Gov't Funds (35%/35%) |
They selected two different Gov't bond funds from out list of recommended gov't funds giving them 35% in each fund. |
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See out list of recommended mutual funds:
Growth Funds |
Growth & Income Funds |
Income Funds
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Woodstock U
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