BOB MILLER

Time horizonBob miller is 42 years old single man. His retirement plan is at the age of 65 with the investment time horizon of 23 years. He is at consolidation phase of investor life cycle.

Investment ObjectiveBob Miller wants sufficient growth of his investment at the time of retirement so that he could have comfortable retired life. Therefore, his investment objective is to realize capital appreciation which focuses on the aggressive growth of the investment value.

Financial stability Miller does not have any dependents and his annual salary is $50000. This shows that short term losses won’t affect his financial position much.

Liquidity needsBob miller is single and his annual salary is $50000 so this suggests that the probability of his short-term need is low as he would not require as much as funds that is required by the people who have family.

Risk ToleranceMiller has acknowledged that he won’t change his investment strategy simply due to short term losses. He has invested sizable portion of his portfolio to Canadian oil and gas stocks despite warning by Wong that these stocks were subject to great cyclical volatility. He has invested 70 % of his portfolio in equities. All these suggest that Bob Miller is capable of tolerating the high risk and withstand greater short term losses.

Emotional Stability Despite saying that he won’t change his strategy just because of short term losses, Miller was highly impacted emotionally by the news of the financial crisis because of which he might even pull his money out of equities entirely.