In view of jennifers long-term investment goals do you

Assignment Help Finance Basics

Reference no: EM13477651

Jennifer Ponders Mutual Funds

Jennifer Hollins is the director of a major charitable organization in Lexington, Kentucky. A single mother of one young child, she earns what could best be described as a modest income. Because charitable organizations aren't known for their generous retirement programs, Jennifer has decided it would be best for her to do a little investing on her own. She'd like to set up a program to supplement her employer's retirement program and, at the same time, provide some funds for her child's college education (which is still 12 years away). Although her income is modest, Jennifer feels that with careful planning she could probably invest about $250 a quarter, and she hopes to increase this amount over time. Jennifer now has about $15,000 in a bank savings account, which she's willing to use to kick off this program. In view of her investment objectives, she isn't interested in taking a lot of risk. Because her knowledge of investments extends no farther than savings accounts, series EE bonds, and a little bit about mutual funds, she approaches you for some investment advice.

Critical Thinking Questions:

1. In view of Jennifer's long-term investment goals, do you think mutual funds are an appropriate investment vehicle for her?

2. Do you think she should use her $15,000 savings to start off a mutual fund investment program?

3. What type of mutual fund investment program would you set up for Jennifer? In your answer, discuss the types of funds you'd consider, the investment objectives you'd set, and any investment services (such as withdrawal plans) you'd seek. Would taxes be an important consideration in your investment advice? Explain.

4. Do you think some type of real estate investment would make sense for Jennifer? If so, what type would you suggest? Explain.

Reference no: EM13477651

Questions Cloud

Youre required to develop a case study for company or : you are required to develop a case study for a company or product of your choice evaluating the supply chain. in the

Explaining the basic theories associated with the creation : prepare a 700- to 1050-word paper describing the basic theories associated with the creation of the ocean floor.include

Types of organizational and computer architectures for : desktop virtualization is growing in popularity. use the internet and strayer library to research this technique.

What are the economic forces or reasons for the development : 1.what are the economic forces or reasons for the development of a single national model code?2.your office has

In view of jennifers long-term investment goals do you : jennifer ponders mutual fundsjennifer hollins is the director of a major charitable organization in lexington kentucky.

How arewere human resources allocated or reallocated were : a. introductionthe introduction is a brief summary of what the critical public health issue is. the introduction should

Assume the role of a case manager at a correctional : assume the role of a case manager at a correctional institution. a university professor has asked you to speak to her

Fnd the least expensive form of permanent insurance : 1. the least expensive form of permanent insurance protection isa. term.b. straight life.c. limited payment.d.

Forms of peasant resistance in mughal india discuss : discuss everyday forms of peasant resistance in mutual india? state the importance of pastoral and forest products in

User Account

All Pages