Jennifer Marsh, a recent dental school graduate from Indiana, Pennsylvania, is thinking about jump-starting a retirement savings plan by investing the $50,000 gift that her elderly uncle gave her. She also wants to invest $1000 a month for the next 25 years for retirement. Jennifer knows little about investments and does not seem to have a big desire to learn.

(a) What can you suggest to Jennifer about fi guring out her investment philosophy? (Hint: Mention the information in Figure 13.3 in your response.)

(b) Would you recommend active or passive investing for her, and why?

(c) Should Jennifer be a lender or owner?

(d) Identify three risks to her retirement investments that Jennifer should try to avoid, and explain how she can avoid them.

(e) Select two of the fi ve recommended investment strategies to recommend to Jennifer, and explain why she should follow them.

(f) If Jennifer’s $50,000 is invested in a standard investment account and her $1000 monthly is invested in a tax–sheltered account, with each account growing at 8 percent annually for 25 years, how much money will she have accumulated? (Hint: Adjust the lump-sum investment for taxes.)