1. INVESTMENT CHALLENGE I Nabila Hashmi, Blessy Thomas, Susan Thomas, & Mary Witte

2. POTENTIAL STRATEGIES First Strategy  Individual Securities  Diversified  All fairly large cap  Did not reflect Wilshire 5000 Index Second Strategy  Multiple sub-indices composing Wilshire 5000 & Lehman Brothers Aggregate Bond Index

3. POTENTIAL STRATEGIES Second Strategy (continued)  Percentages of $300,000 in sub-divisions of Wilshire 5000 Index 25% into a mutual fund tracking the Wilshire Large Cap 750 index. 30% into a mutual fund tracking the Wilshire Mid-Cap 500 index 10% into a mutual fund tracking the Wilshire Small Cap 1750 index. 10% into a mutual fund tracking the Wilshire Micro-Cap index. 10% into a mutual fund tracking the Wilshire All Value index. 15% into a mutual fund tracking the Wilshire All Growth index.  Percentages of $200,000 in sub-divisions of Lehman Brothers Aggregate Bond Index 50% into a bond fund tracking the Short-Term portion of the Lehman Brothers Bond index. 25% into a bond fund tracking the Intermediate-Term portion of the Lehman Brothers Bond index. 25% into a bond fund tracking the Long-Term portion of the Lehman Brothers Bond index.

4. POTENTIAL STRATEGIES Third Strategy  One fund containing stocks and bonds  Vanguard Balanced Index Fund (VBINX)  60% tracks performance of Wilshire 5000 Index  40% tracks performance of Lehman Brothers Aggregate Bond Index Fourth Strategy  Two funds  One stock fund and one bond fund

5. POTENTIAL STRATEGIES Fourth Strategy (continued)  60% in Vanguard Total Stock Market VIPERs (VTI)  40% in Vanguard Total Bond Market Index Fund (VBMFX)  Simplified, direct, and efficient OUR PICK – FOURTH STRATEGY

6. Vanguard Total Stock Market VIPERs (VTI)

7. Vanguard Total Bond Market Index Fund (VBMFX)