INVESTMENT POLICY STATEMENT.
Prepare and write an Investment Policy Statement for Lawrence Thompson using the information provided below.
ASSIGNMENT
Lawrence Thompson, 60 years old recently retired and received a $5M cash payment from his employer as an early retirement incentive. He also obtained $800,000 by exercising his company stock options. Both amounts are net of tax. Thompson is not entitled to a pension; however, his medical expenses are covered by insurance paid for by his former employer. He is in excellent health and has a normal life expectancy.
Thompson has no assets other than the $5.8 million cash referenced above, and he has no debts. Thompson’s living expenses will be $200,000 per month and will rise with inflation. He does not plan to work again.
- Prepare an Investment Policy Statement for Lawrence that suits his needs based on the information provided above.
- Provide a word document and excel spreadsheet in accordance with the work done.