Your aunt and uncle, Marilyn and David are both 65 and are about to retire. They have no
assets other than $1,600,000 in cash savings, and they have no debts. They wish to maintain their
current lifestyle during their retirement years. Their current annual living expenses are $120,000
per year. They have no children and they do not wish to bequeath any assets to charity after they
pass. Marilyn and David are in excellent health and have a normal life expectancy. They are,
however, concerned about the possibility of outliving their retirement income (i.e., longevity
risk). During their retirement years, they will rely entirely on their savings to support
themselves. In addition, they are risk averse and do not want to experience a significant loss of
Marilyn and David have decided to use their cash savings to purchase an annuity that will
provide them with the necessary income to cover their living expenses over their retirement
years. They initially consult with Ms. Sheila Young who is an investment advisor at Merrill
Lynch about purchasing their desired annuity. Ms. Young is a relatively new financial advisor
and claims to be able to get Marilyn and David a much higher annual income because she
“knows” how to invest their savings in financial instruments that can yield at least 15% per year.
Given the data in the “Risk and Return” Excel spreadsheet (also posted on Canvas), this assumed
rate is well above the historical average return for U.S. stocks as measured by the S&P 500 stock
Marilyn and David want you to provide a “second opinion” of the analysis done by the
Merrill Lynch advisor. Specifically, they want you to write a memo to Ms. Young that
compares her proposal with your “second opinion” that will analyze the risks and benefits
of each alternative. They feel certain that Ms. Young is not giving due consideration to their
risk aversion and other consideration such as realistic expected stock market returns and
longevity. Since your aunt and uncle do not know how to clearly articulate their concerns to Ms.
Young, they want you to prepare this memo on their behalf.
Write a memo to Ms. Sheila Young containing the following information:
1. Provide a professional and financially sound evaluation of her proposal and contrast it
with your own alternative proposal.
2. Please use and include the attached Excel spreadsheet in your evaluation that will:
i) analyze and challenge Ms. Young’s assumptions and identify weaknesses in her
ii) offer an alternative analysis based on your own assumptions.
3. Your conclusion must include specific actions to address and correct the problems and/or
mistakes in Ms. Young’s analysis.
(No sources are needed for this assignment, just an evaluation).
Why Choose Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
Customer Support 24/7
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admission and Business Papers
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Editing and Proofreading
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.