Case Study: Sarah’s First Investment Portfolio
Sarah, a 29-year-old UX designer, sets a goal to save $65,000 in 7 years for a home down payment. With a moderate risk profile, she builds a simple 60/30/10 portfolio of global equities, bonds, and cash. By investing $550/month via a low-cost platform and rebalancing annually, Sarah stays on track, growing her portfolio while building strong investing habits.
7/22/20251 min read
Case Study: Sarah’s First Investment Portfolio
Profile
Name: Sarah Lee
Age: 29
Occupation: UX Designer
Annual Income: $60,000
Goal: Buy a home in 7 years
Target Amount: $65,000 for down payment
Monthly Savings: $550
Risk Tolerance: Moderate
Investment Knowledge: Beginner
Step 1: Defining the Goal
Sarah wants to save $65,000 over 7 years. With $550/month saved and assuming a 5–6% average annual return, she’s on track.
Step 2: Portfolio Allocation
Based on her moderate risk tolerance, Sarah's starting allocation looks like this:
Asset ClassAllocationExample InstrumentsGlobal Equities60%Vanguard Total World ETF (VT)Intermediate Bonds30%iShares Core US Aggregate Bond (AGG)Cash / Money Market10%Fidelity Government Money Market Fund
Step 3: Investment Plan
Sarah invests through a low-cost robo-advisor platform. Her key actions:
Sets up automatic monthly contributions of $550
Chooses a taxable brokerage account
Rebalances annually to maintain 60/30/10 mix
Step 4: First Year Review
After 12 months:
Her portfolio grows 6.2%
Equities rise to 65% due to tech rally
She rebalances back to 60/30/10
She increases contributions to $600/month
Takeaways for Beginners
Set time-bound goals to guide investment strategy
Diversify across global stocks and safe bonds
Rebalancing keeps risk in check
Consistency beats timing, automate and remain invested