Question

Customer Name: Joey JonesAge: 30Marital Status: SingleDependents: NoneOccupation: VP - Marketing - ACCO Corp.Household Income: $250,000Net Worth: $60,000 (excluding residence)Own Home: No - RentsInvestment Objectives: Aggressive Growth / Early Retirement at age 50Investment Time Horizon: 20 yearsInvestment Experience: 0 yearsCurrent Portfolio Composition: 401k: $30,000Cash in Bank: $30,000When reviewing this customer's profile sheet, the most immediate question that should be considered is:_______.A. "Does the customer intend to buy a home?"B. "Does the customer intend to get married?"C. "Since the customer earns $250,000 per year, how come he only has $60,000 in his portfolio?"D. "Since this customer is age 30, why does he want to retire by age 50?"The best answer is C.This customer, age 30, is a high earner, yet he only has $60,000 put away in his 401k and in cash. It sure looks like he is a big spender! Beginning a systematic plan of putting away money for retirement is critical when formulating an investment plan for a customer - especially one that wants to retire in 20 years. The customer must be made aware of the fact that, probably, his current spending pattern needs to be curtailed. This customer needs to start socking away money now to meet his early

Answer 1

C. This customer, age 30, is a high earner, yet he only has $60,000 put away in his 401k and in cash.

Step-by-step explanation:

The customer Mr.Joey Jones is 30 years old and has high earning through his job. He plan to retire at age of 50 so he has 20 years from now for the investment. Mr Joey earns $250,000 yet he has saving of only $60,000 in the bank. This suggests that he is high spender and does not saves much money. If he has plan to retire at age of 50 then he must save money and cut down his expenses to meet portfolio investments.