Introduction

The aim of our following proposal is to help Mr. Donothing to construct an investment portfolio base on an inheritance of $10 million dollar. After the meeting with Mr. Donothing we understand his existing lifestyle and his vision on his future personal plans. We will conduct a series of economic analysis to demonstrate the possible future economic trends and base on our analysis we will suggest several types of investment for Mr. Donothing to make a final decision. In addition, we will identify and provide our professional suggestion on each and every industry and company he should consider base on current market trends and company’s growth prospect/opportunity during the investment timeframe. Finally, there will be an evaluation of the portfolio by using expected return rates to understand whether it meets the needs and preferences of the investor.

Investor Profile and Policy Statement

Investor Profile

Mr. Donothing is 50 years old and single. The most important is that Mr. Donothing does not work at all but he inherited $10 million. He is an amphibious person, which means he spends his time in cruise lines. Furthermore, he needs $550 per day throughout the year for cabin charges and food. And he needs another amount $25,000 for secretarial services and incidental expenses. He wants to settle in Pompano Beach, Florida at 55, and then get married and have a child. The house he wants to buy is selling for $500,000. His cash needs would remain more or less unchanged after he settles on land.

Prerequisites
Necessities of life: Mr. Donothing needs $550 per day and $25,000 for secretarial services and incidental expenses per year in 5 years.
$550 × 365 = $200,750
Total (per year): $200,750 + $25,000 = $225,750 After 5 years when he gets married, the total cost for his family will increase to around