Investment Portfolio Analysis

Client Profile

I, Harris Khan, have been chosen as a financial advisor for Mr. Alan Simpson. Mr. Alan Simpson, who is using an alias, is a male of the age of 35. Mr. Simpson is wishing to form an investment portfolio and has enlisted my help in order to create a well-balanced and successful portfolio. Together, we looked at Mr. Simpson’s current assets, liabilities and risk profile and formed an investment strategy to use in developing his portfolio. Mr. Simpson was asked to fill out a survey which should clearly establish his financial goals and capabilities, helping greatly in developing his eventual portfolio. Mr. Simpson is currently single and without any children. Due to the fact that Mr. Simpson does not have any children, there is an opportunity to invest in more high-risk securities.

Mr. Simpson works as a taxicab driver, and is therefore self-employed. Mr. Simpson owns both the car and the license plate he uses in his practice, and can therefore make a profit without having to pay an owner. Due to these circumstances, Mr. Simpson has very flexible working hours, as he doesn’t have to report to anybody. Mr. Simpson’s current annual salary is calculated to be $40 000 a year. His net worth is currently estimated to be at $120 000. Mr. Simpson has a very small monthly surplus of $180 due to his large amount of expenses. Despite this, Mr. Simpson is currently satisfied with his living conditions and current income stream.

Mr. Simpson is planning to retire when he is 65 years old. His main investment goal is to obtain additional monetary funds to hasten his retirement, as well as provide himself with the means to a comfortable lifestyle after he is retired. Mr. Simpson has stated that his investment goal is to make at least $3 000 over a period of five years. Mr. Simpson does not wish to disrupt his current monthly income stream, and has instead chosen to take the money he wishes to invest from his savings account. His savings account currently holds...