Kevin, thanks for coming in today. How can I help with your retirement planning?

I’m turning 55 next month and want to ensure my savings last. I’m not sure which investment options suit me.

First, let’s review your risk tolerance. Are you comfortable with market fluctuations?

I prefer stability over high returns. I’d rather accept lower gains than risk large losses.

In that case, a mix of government bonds and balanced mutual funds would work. It offers steady income and moderate growth.

What about inflation? Won’t bonds lose value over time?

Good point. We can include inflation-indexed bonds and a small allocation in dividend-paying stocks to hedge inflation.

How much should I allocate to stocks versus bonds?

I recommend a 30/70 split: 30% in stocks, 70% in bonds and cash equivalents.

That sounds reasonable. How often should I rebalance the portfolio?

Semi-annually is sufficient. We’ll review performance every six months and adjust to maintain your target allocation.

Yes, the mutual funds have a management fee of 0.8%, and trading fees apply if we adjust frequently.

Certainly. We can use low-cost index funds instead of actively managed ones to reduce fees to around 0.2%.

Great. When can we start implementing this plan?

I can set up the portfolio by next Monday. I’ll send you the account paperwork today.

Perfect. Thank you for your guidance, Dana.

You’re welcome. I’ll follow up after our first semi-annual review.

You will hear a conversation between a financial advisor and a client.

What is Kevin’s main concern about his investments?

What can be inferred about Kevin’s attitude toward risk?

What portfolio split does Dana recommend?

What is the main purpose of their conversation?

How often does Dana suggest rebalancing the portfolio?