Salt Lake City Olympics Scandal

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,

you've 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