Client Memo: Understand and Mitigate Risk

 ATTACHED IS GRADING RUBRIC!!!!

Overview

Financial management applies to personal as well as business financial decisions. In this week’s assignment, you will lay the groundwork for creating a personal retirement plan in Week 9.

This week’s analysis requires you to apply what you have learned using the textbook, as well as additional Internet and SU Library research. Also, please refer to the assignments in Weeks 2 and 4, in which you evaluated stocks and bonds as investment options and applied the concept of present value.

Scenario

For this assignment, you take on the role of a personal retirement planner who is preparing a memo for your client. In the memo, explain to the client the financial and risk considerations that go into planning for retirement.

Instructions

Write a 4-5 page paper using the following instructions:

1. Describe the importance of factors to consider when developing a retirement plan. These will include age, marital status, number of dependents, health, life expectancy, and other sources of income such as social security and pensions.
2. Examine the relationship between risk and return and its impact on decisions about saving for retirement. Provide examples of the relationship.
3. Explain how risk factors (such as age and personal risk tolerance) impact the allocation of assets included in a retirement plan. Support your explanation with examples of how asset allocation changes as the risk factors change.
4. Analyze how fiscal and monetary policies may impact retirement plans.
   1. Research how changes in fiscal policy and monetary policy can impact retirement savings.
   2. This research should include how changes in policies, including interest rates, tax rates, and policies that impact savings (IRAs, 401k), can impact retirement plans.
5. Evaluate the implications of the time value of money with respect to saving for retirement. Support the answer with specific examples and explanations.
6. Use 4-5 sources to support your writing. Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source page at least one time within your assignment. For help with research, writing, and citation, access the library or review library guides. 

This course requires the use of Strayer Writing Standards (SWS). The library is your home for SWS assistance, including citations and formatting. Please refer to the Library site for all support. Check with your professor for any additional instructions.

The specific course learning outcome associated with this assignment is as follows: 

• Determine the suitability of an investment strategy that considers external risk factors and a literature review. 
• Create investment recommendations based on research that includes the rationale and risk mitigation for the chosen strategies.