NO.PZ202410180200002306
问题如下：
Henlopen McZhao is a private wealth manager and is meeting with a new client, Nescopeck Cree, to plan a wealth management strategy. To begin this meeting, McZhao seeks additional background information from Cree necessary as part of preparing the IPS. McZhao learns that Cree is 45 years old and is married with three children (ages 8, 5, and 1). Cree is currently employed as an attorney with annual salary of EUR300,000. Cree has several specific financial goals that he wishes to achieve in the future but has no particular return objective for his portfolio currently valued at EUR2,500,000. Because he has been investing for 20 years, Cree is comfortable with moderate levels of market volatility. His employment provides for his current expenses, so Cree’s liquidity requirements are minimal. Cree prefers to have his environmental and social concerns reflected in his investment choices. McZhao then focuses on Cree’s financial goals. Cree plans to retire in 17 years and expects to need EUR200,000 per year on an inflation-adjusted basis to fund a desired retirement lifestyle for himself and his spouse. However, he is also concerned about how increasing medical expenses might affect his portfolio’s ability to fund their retirement. As a potential solution to this concern, Cree hopes to purchase an apartment building within the next three years and use the rental income from this investment property to help fund medical expenses during retirement. Cree wants to fund university expenses for his three children, with the first payment starting in 10 years and continuing for 12–15 years. Cree’s wife enjoys donating to philanthropic causes. She currently donates EUR10,000 per year, but by the time Cree retires, she hopes to increase this amount to EUR30,000 per year. Cree collects antique furniture and budgets EUR15,000 per year for additions to his collection. He mentions that this year’s antique purchase will be his next large expense and currently has the highest priority of all his goals. McZhao continues the discussion with Cree in order to evaluate his degree of risk tolerance. Cree considers retirement a long-term goal and is willing to endure a 10% drop in expected retirement spending. However, he is very concerned with having sufficient funds to cover medical expenses and views purchasing an investment property as a source of stable income to cover these expenses, so it is very important to him to purchase the building
Determine Cree’s degree of risk tolerance (lower versus higher) with respect to his retirement goal. Justify your response.
选项：
解释：
Retirement goal: Higher risk tolerance. Retirement is a long-term goal with a very long time horizon given that his planned retirement date is in 17 years, so this time frame reflects the beginning of his financial needs for this goal. Cree is willing to incur a moderate drop in his planned expenses, so he likely has a higher risk tolerance for that goal. Cree is concerned about paying future medical expenses in retirement, and since his retirement is still 17 years in the future, he likely has a higher risk tolerance with the medical expenses goal, especially given that he views the planned investment property purchase as providing a stable income stream.
The risk tolerance is high. He concerned about how increasing medical expenses might affect his portfolio’s ability to fund their retirement. As a potential solution to this concern, Cree hopes to purchase an apartment building within the next three years and use the rental income from this investment property to help fund medical expenses during retirement. By doing so, the apartment building would generate rental income to help fund medical expenses during retirement. The ability of taking risk is high.
Cree considers retirement a long-term goal and is willing to endure a 10% drop in expected retirement spending. The willingness of taking risk is high.
