Question Description

How would the asset allocation differ between a 25 year-old who is saving for retirement and a 67 year-old who is beginning retirement?

Be sure to provide the following:

  • Give a reasonable stock-to-bond ratio for each investor.
  • Explain your allocation.

Focus your discussion on the following:

  • Asset allocation
  • Time horizon
  • Ability to assume risk
  • Earning capacity
  • Income needs

How would the asset allocation differ between a 25 year-old who is saving for retirement and a 67 year-old who is beginning retirement?Be sure to provide the following:Give a reasonable stock-to-bond ratio for each investor.Explain your allocation. Focus your discussion on the following:Asset allocationTime horizonAbility to assume riskEarning capacityIncome needs