Background of Marconi's Family

Background of Marconi's Family:

The Marconi's family consists of 3 members, the parents and one son. Both parents are in early fifties aiming to retire within 10 years their son is 19 years old pursuing his education in a college.

The parents fall under the consolidation investment phase concluding that their income derived from their annual salaries (100,000 $) covers their living expenses (including their son's college expenses). The parents are saving 25.000 $/ year with the expectation of little changes of their income due to inflation and addition of their son's college expenses.

Frank and Estelle personal investments total $600,000, and they plan to continue to manage the portfolio themselves. They prefer ‘‘conservative growth investments with minimal volatility.’’ One-third of their portfolio is in the stock of Estelle’s employer, a publicly traded technology company with a highly uncertain future. The shares have a very low cost basis for tax purposes. Frank and Estelle are currently taxed at 30 % on income and 20 percent on net realized capital gains. They have also accumulated losses from past unsuccessful investments that can be used to fully offset $100,000 of future realized gains.

Background of Marconi's Family:

The Marconi's family consists of 3 members, the parents and one son. Both parents are in early fifties aiming to retire within 10 years their son is 19 years old pursuing his education in a college.

The parents fall under the consolidation investment phase concluding that their income derived from their annual salaries (100,000 $) covers their living expenses (including their son's college expenses). The parents are saving 25.000 $/ year with the expectation of little changes of their income due to inflation and addition of their son's college expenses.

Frank and Estelle