Retirement money requirements

Reference no: EM131028176

1) The Tilson's Focus Fund (TILFX) and Tilson's Dividend Fund (TILDX) are two funds that have positive alpha for a long period of time. TILFX has positive alpha of 80 basis points per month while TILDX has alpha of 52 basis points per month (Source: business insider). As the names suggest, TILFX invests in some selected high growth stocks of consistent good performance and TILDX invests in high dividend yield stocks. If you had to choose a fund, explain which one you would buy and why?

2) What reasons would make you sell this fund?

3) Consider the following information on 2 investors:

Paul and Susan would be requiring funds to fund their retirement. Presently they are having annual expenses of $ 150,000. The expected inflation rate is 3% and their growth objective is 1%. The current household income is $ 260,000 ($ 170,000 + $ 90,000). Of the annual income required after the age of 65, $ 85,000 p.a. can be expected to be received from the pension. The other part of the money required at retirement can be funded by investing the salary over and above the current expenses along with the given portfolio for the next 8 years until the retirement. These investments will earn return and will fund the retirement money requirements.

Do you think this fund would be appropriate for our clients The Harrisons? Why or why not?

Reference no: EM131028176

Questions Cloud

Why do the organizations outsource the logistics services : What do you understand by Third Party Logistics provider? Why do the organizations outsource the logistics services?

Are the events a and m independent : An employee is to be selected randomly from this population. Let A be the event that the employee scores a passing grade on the exam and let M be the event that a male is selected. Are the events A and M independent

Identify and summarize a recent fraud case : Explain what the investigators did not do properly - Explain what the investigators should have done differently.

In how many different ways can 10 quarters be distributed : If a committee varies its meeting days, how many meetings must it schedule before we can guarantee that at least two meetings will be held on the same day of the week??

Retirement money requirements : The other part of the money required at retirement can be funded by investing the salary over and above the current expenses along with the given portfolio for the next 8 years until the retirement. These investments will earn return and will fund..

How you would conduct the interview of the suspect : How you would conduct the interview of the suspect - Would your interview use a script or planned series of questions?

Write the following in roster form : Set K contains 30 elements, set J contains 46 elements, and 11 elements are common to both sets. Find n ( K U J).

What is probability that vote would split along sex lines : If there was no sex bias among the board members, it might be reasonable to conjecture that any group of five board members would be as likely to vote for the complainant as any other group of five. If this were the case, what is the probability t..

Description of the data and how it was obtained : Use the following as section headings as you discuss these components: rationale for the research (stating the problem being addressed); the researcher's scientific approach or methodology; description of the data and how it was obtained; supporting ..

User Account

All Pages