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Susan Griffin Case Study Analysis

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FINANCE Investments and Portfolio Management

Team Case Study Analysis Susan Griffin: Formulation of a Long-Term Investment Strategy

TEAM X

Case Overview
Susan Griffin, owner and CEO of Griffin Incorporated, was planning to sell the company. Despite the success of her company, she was 62 years old and wanted to be free of the responsibilities and retire. Working with her bank advisors, indications estimated the sale to be worth about $10 million. She was currently earning good income from the operations of her company. Prior to the sale, most of her wealth was held in company stock; however, with the sale of the company most of her holdings would be converted into liquid assets that need to be invested and managed (See Exhibit 1 for Assets). Now Susan would need to decide how to allocate her investments in a way that would allow her to continue to live comfortably and also cover her family’s financial needs. Therefore, the analysis provided within the case study covers the method and recommendation on how Susan should invest and manage her portfolio and in what proportion the investment should be allocated toward the various options available.
Key Assumptions
In order to properly evaluate Susan’s scenario and develop her optimal portfolio, several assumptions must be defined. These assumptions are detailed in the list below: 1. Susan’s required annual income equates to $438,143 (before taxes). This estimate was calculated by taking a detailed look at her current and planned future expenses (See Exhibit 3). 2. It is assumed that Susan has just turned 62 and her company will sell immediately. She will immediately invest her financial assets per the recommended portfolio allocations. The first retirement withdrawal will be taken out of the proceeds of the sale prior to investing

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