David Silva's Personal Investment Plan

David Silva was reflecting on his financial investment plan as his graduation from the HBA program at the Richard Ivey School of Business loomed on the horizon. More than half of his net worth was tied up in his recent purchase of a sports car. The remainder of his portfolio was cash and mutual funds, managed by a financial advisor whom David met with twice per year. His future job earnings, in the short run, were quite fluid and made budgeting difficult; however, at the peak of his career David estimated he could earn upwards of $350,000. His investor profile produced the following: Financial goals were home ownership, raising a family, retirement, and children’s education. His risk/return needs would be flexible over time and rebalancing would be continuous. David’s investment preferences gravitated towards conventional types and real estate with a focus on low-fee and value investments, and using an advisor but with the freedom to make his own choices between asset classes. David’s next step was to actually meet with his advisor to set targets for savings and contributions to fulfill his plan.