Problem
Your new client Sandy Jones, a 27-year-old single lawyer, earns $70,000 before tax and has saved $30,000. Sandy plans to use this money to start investing for retirement.
She is just beginning her career, and does not plan to retire until age 65. She is not concerned about her portfolio fluctuating, since she does not need the money at this time and her job is stable. Bob reads the business section of the newspaper each morning, and has a good understanding of financial markets.
What is Sandy's's financial objective: growth, capital preservation or income? What about her time horizon: Is it 0 to 5 years, 5 to 10 years, 10 to 15 years, or 15+ years? Do you think Sandy''s risk tolerance is high, medium or low? What are the best types of investment products for Sandy? Why?