Question
12. a.List three personal factors that might lead some investors to emphasize income rather than growth in their investment planning. b.List three personal factors that
12. a.List three personal factors that might lead some investors to emphasize income rather than growth in their investment planning.
b.List three personal factors that might lead some investors to emphasize growth rather than income in their investment planning.
13. Assume that you are 28 years old and that your take home pay totals $2,200 a month, you have monthly living expenses that total $1,200, your monthly car payment is $300, and your credit card debts total $4,900. Develop a three-part plan to (1) reduce your monthly expenses, (2) establish an emergency fund, and (3) save $4,000 to establish an investment program.
14. From the investment alternatives described in chapters, choose two specific investments that you feel would help an individual who is 35 years old, divorced, and earns $20,000 a year begin an investment program. Assume that this individual has $30,000 that can be invested at this time. As part of your recommendation, compare each of your investment suggestions on the factors of safety, risk, income, growth, and liquidity.
6.A chapter explored a number of different classifications of mutual funds.
a.Based on your age and current financial situation, which type of mutual fund seems appropriate for your investment needs? Explain your answer.
b.As people get closer to retirement their investment goals often change. Assume that you are now 45 and have accumulated $110,000 in a retirement account. In this situation, what type of mutual fund would you choose? Why?
c.Assume that you are now 60 years of age and have accumulated $400,000 in a retirement account. Also, assume that you would like to retire when you are 65. What type of mutual funds would you choose to help obtain your investment goals? Why?
7.Explain how the concept of dollar-cost averaging applies to the options that are used to purchase mutual funds.
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