Q4. Barbara Analee, a retired registered nurse and business woman, recently retired at age 50 to pursue a life as a blues singer. She had been running a successful cosmetics and aesthetics business using state-of-the-art lasers to treat wrinkles and skin   blemishes. She is married to Tom, a retired scientist (age 55). They have saved $3 million in their portfolio (Barbara contributed $2.5 million to this portfolio) and now they want to travel the world. Their three children are all grown and out of college and have begun to have their own families. Barbara now has two grandchildren. Barbara and Tom feel that they have achieved a comfortable portfolio level to support their family’s needs for the foreseeable future.

In order to meet their basic living expenses, Tom and Barbara feel that they need $75,000 per year in today's dollars before taxes to live comfortably. As a trained professional, Barbara likes to be involved in intensively researching investment opportunities. Barbara and Tom want to be able to provide $10,000 per year (pretax) indexed for inflation to each of their grandchildren over the next ten years for their college education. She believes that she can accomplish this through her portfolio. She also wants to set aside $15,000 each year (pretax) indexed for inflation for traveling for her musical performances at various dinner clubs around the U.S. They have no debt and they own their home without a mortgage. Most of their portfolio is currently in large cap U.S. stocks and U.S. Treasury notes and bills.

They have approached Pamela Jaycoo, CFA, for guidance on how they could best achieve their financial goals while also providing for their grandchildren’s college needs. Inflation is expected to increase at an annual rate of 3 percent into the foreseeable future.

Barbara Analee can be classified into which of the following personality types?

A)   Methodical investor.

B)   Cautious investor.

C)   Individualist investor.

答案和详解如下：

Q4. Barbara Analee, a retired registered nurse and business woman, recently retired at age 50 to pursue a life as a blues singer. She had been running a successful cosmetics and aesthetics business using state-of-the-art lasers to treat wrinkles and skin   blemishes. She is married to Tom, a retired scientist (age 55). They have saved $3 million in their portfolio (Barbara contributed $2.5 million to this portfolio) and now they want to travel the world. Their three children are all grown and out of college and have begun to have their own families. Barbara now has two grandchildren. Barbara and Tom feel that they have achieved a comfortable portfolio level to support their family’s needs for the foreseeable future.

In order to meet their basic living expenses, Tom and Barbara feel that they need $75,000 per year in today's dollars before taxes to live comfortably. As a trained professional, Barbara likes to be involved in intensively researching investment opportunities. Barbara and Tom want to be able to provide $10,000 per year (pretax) indexed for inflation to each of their grandchildren over the next ten years for their college education. She believes that she can accomplish this through her portfolio. She also wants to set aside $15,000 each year (pretax) indexed for inflation for traveling for her musical performances at various dinner clubs around the U.S. They have no debt and they own their home without a mortgage. Most of their portfolio is currently in large cap U.S. stocks and U.S. Treasury notes and bills.

They have approached Pamela Jaycoo, CFA, for guidance on how they could best achieve their financial goals while also providing for their grandchildren’s college needs. Inflation is expected to increase at an annual rate of 3 percent into the foreseeable future.

Barbara Analee can be classified into which of the following personality types?

A)   Methodical investor.

B)   Cautious investor.

C)   Individualist investor.

Correct answer is C)

Barbara can be clearly classified as an Individualist Investor whereby decisions are based on thinking, rather than feeling. Having been trained as a nurse where the methodical study of the human anatomy is required, she would not be afraid to do her own research work on her investments and would even question recommendations and conclusions made by her investment advisors. She is also less risk averse because she understands the results of her decisions, particularly when she is involved in treating hospital patients and customers using a laser.

Cautious investors base their investment decisions on feeling and are more risk averse. Methodical investors base their investment decisions on thinking and are also more risk averse.

Thank you!