Reference no: EM131133235
Reverend Mark Thomas Ponders Mutual Funds
The Reverend Mark Thomas is the minister of a church in the San Diego area. He is married, had one young child, and earns a "modest income". Because religious organizations are not notorious for their generous retirement programs, the reverend has decided he should do some investment on his own. He would like to set up a program that enables him to supplement the church's retirement program and the same time provide some funds for his child's college education (which is still some 12 years away). He is not out to break any investment records but wants some backup to provide for the long - run needs of his family.
Although he has a modest income, Mark Thomas believes that with careful planning, he can probably invest about $250 a quarter (and, with luck, increase this amount over time). He currently has about $15,000 in savings account that he would be willing to use to begin this program. In view of his investment objectives, he is not interested in taking a lot of risk. Because his knowledge of investments extends to savings account, Series EE savings bonds, and a little bit about mutual funds, he approaches you for some investment advice.
Questions:
1. In light of Mark's long - term investment goals, do you think mutual funds are an appropriate investment vehicle for him?
2. Do you think he should use his $15,000 savings to start a mutual fund investment program?
3. What type of mutual investment program would you set up for the reverend? Include in your answer some discussion of the types of funds you would consider, the investment objectives you would set, and any investment services (e.g. withdrawal plans) you would seek. Would taxes be an important consideration in your investment advice? Explain.
|
Computers operates a plant with an annual capacity
: A manufacturer of laptop computers operates a plant with an annual capacity of 6,630,000 laptop units. One of its models is expected to sell 390,000 units in the coming year. How large should each product lot be if it costs $575 to change producti..
|
|
The bond investment decisions of dave and marlene carter
: Dave and Marlene Carter live in Boston area, where Dave has a successful orthodontic practice. Dave and Marlene have build up a sizable investment portfolio and have a major portion of their investments in fixed - income securities.
|
|
What role do vows play in the life of a lay jain person
: How would you describe the religion of Hinduism to someone who has not studied the religion in any way? Be sure to include major philosophies, theistic paths, and ritual practices. Be sure to explain any religious terms that the non-religious woul..
|
|
What is the best response of the democrats
: Deficit reduction as a prisoner's dilemma game Suppose there is a budget deficit. It can be reduced by cutting military spending, by cutting welfare programs, or by cutting both. The Democrats have to decide whether to support cuts in welfare prog..
|
|
Reverend mark thomas ponders mutual funds
: The Reverend Mark Thomas is the minister of a church in the San Diego area. He is married, had one young child, and earns a "modest income". Because religious organizations are not notorious for their generous retirement programs, the reverend has..
|
|
What things must an entrepreneur improve
: what things must an entrepreneur improve when developing new products - deliver superior value to customers?
|
|
What three spheres of influence impact the esteem of people
: What three spheres of influence impact the esteem of people? Based on these three spheres, why does Leary suggests that Blacks have a vacant esteem and how does the example of Carl and Dominic reveal the power of a vacant esteem?
|
|
What is point of reflective writing in an academic setting
: What is the point of reflective writing in an academic setting? Reflective writing helps you examine why you think the way you do and thereby provides a learning experience. By careful analysis of the facts of an event or situation, and then the s..
|
|
Earnings manipulation and the cost of capital
: This paper examines the role of earnings management in affecting a firm's cost of capital. Using an agency model with multiple firms whose cash flows are correlated, it demonstrates the extent of earnings manipulation which varies across the busin..
|