2. Jamie Lee and Ross have been reading quite a lot about stock funds while researching the classifications of mutual funds. At Jamie Lee and Ross’s stage in life, what different types of stock funds would you recommend for them to invest their $50,000 inheritance in? Why?Jamie Lee and Ross did several weeks’ worth of research trying to choose the right stock to invest in.

After all, the $50,000 inheritance was a lot of money and they wanted to make the most informed investment choices they could. They discovered, by doing their homework, the various companies’

stocks that they were looking to invest in did not seem like they were going to have the promising future that Jamie Lee and Ross were hoping for. They were aware that they were taking a chance with any investment, but they were both nervous about “putting all of their eggs” in stocks and wanted to be more confident in making their investment choices. But how could they be more assured?

They decided to speak to their professional financial planner, who suggested that investing in mutual funds may be the way to lessen the risk by joining a pool of other investors in a variety, or bundle, of securities chosen by a professional mutual fund manager. This way, Jamie Lee and Ross could lessen the pressure of choosing the right company and minimize the chances of losing all of their investment money by diversifying their portfolio.

A mutual fund sounded like the sensible investment choice for them, but which mutual fund would best match their investment strategy? Jamie Lee and Ross are in their mid-40s and well on their way to reaching their long-term investment goals, as they committed to reaching their objectives early in their marriage. They set their sights on having the triplets graduate from college debt-free and saving enough to purchase a beach house when they retire. They are looking for a mutual fund that will provide investment income while maintaining the moderate risk investment path that they are on, as they have some time to go before retirement.

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Current Financial Situation Assets (Jamie Lee and Ross combined): Checking account, $7,500 Savings account, $83,000 (including the $50,000 inheritance) Emergency fund savings account, $45,000 Income: Jamie Lee, $45,000 gross income ($31,500 net income after taxes) Ross, $135,000 gross income ($97,200 net income after taxes)