Reference no: EM133056839
- Nicole is the director of a major charitable organization in North Carolina.
-She is a single mother of one young child, she earns a modest income.
- Nicole 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 12 years away).
- Although her income is modest, Nicole believes that with careful planning, she could probably invest about $250 a quarter, and she hopes to increase this amount over time. ---- Nicole 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.
- Nicole's knowledge of investments extends no further than savings accounts, series EE bonds, and a little bit about mutual funds.
In view of Nicole's long-term investment goals, are mutual funds or ETFs, the more appropriate investment vehicle for her? Also what advice would be good to give her when using this investment vehicle?