It has been over 25 years since Julia graduated with a major in aeronautical engineering, and she

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It has been over 25 years since Julia graduated with a major in aeronautical engineering, and she has been quite successful in her career as well as in managing her personal finances. She has moved up the career ladder, earns a high salary, has $50,000 in equity in her condo, and has an investment portfolio valued at $300,000 that includes $200,000 in retirement assets through her employer’s 401(k) plan. She wants to liquidate her $300,000 investment portfolio now invested in stocks, bonds, and gold and put everything into mutual funds. Julia is optimistic about the future of investing. After serious research, Julia has decided to invest $300,000 into ETFs and index mutual funds rather than actively managed funds. Offer your opinions about her thinking.

Mutual Funds
Mutual funds are like a pool of funds gathered by different small investors that have simalar investment perspective about returns on their investments. These funds are managed by professional investment managers who act smartly on behalf of the...
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Personal Finance

ISBN: 978-1133595830

12th edition

Authors: Thomas Garman, Raymond Forgue

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