NO.PZ201805280100000303
问题如下:
Emma Young, a 47-year-old single mother of two daughters, ages 17 and 20, recently sold a business for $5.5 million net of taxes and put the proceeds into a money market account. Her other assets include a tax-deferred retirement account worth $3.0 million, a $500,000 after-tax account designated for her daughters’ education, a $400,000 after-tax account for unexpected needs, and her home, which she owns outright.
Her living expenses are fully covered by her job. Young wants to retire in 15 years and to fund her retirement from existing assets. An orphan at eight who experienced childhood financial hardships, she places a high priority on retirement security and wants to avoid losing money in any of her three accounts.
The broker suggests that Young rebalance her $5.5 million money market account and the $3.0 million tax-deferred retirement account periodically in order to maintain their targeted allocations. The broker proposes the same risk profile for the equity positions with two potential target equity allocations and rebalancing ranges for the two accounts as follows:
■ Alternative 1: 80% equities +/– 8.0% rebalancing range
■ Alternative 2: 75% equities +/– 10.7% rebalancing range
选项:
解释:
$5.5 million money market account is Suitable for ALt2.
$5.5 million money market account is taxable account so it has more tax cost and more tax burden. Also, taxable account has less volatility compare to tax-deffered account. The Width of the rebalancing range is greater for this situation.
$5.5 million tax-deferred retirement account is Suitable for ALt1.
$3.0 million tax-deferred retirement account so it has less tax cost and less tax burden. Also, taxable account has more volatility compare to taxable account. The Width of the rebalancing range is smaller for this situation.