Nichole Whiting is the director of a major charitable organization in Charlotte, North Carolina. A single mother of one young child, she earns what could best be described as a modest income. Because charitable organizations arent known for their generous retirement programs, Nichole has decided it would be best for her to do a little investing on her own. Shed like to set up a program to supplement her employers retirement program and, at the same time, provide some funds for her childs college education (which is still 12 years away). Although her income is modest, Nichole believes that with careful planning, she could probably invest about $250 a quarter, and she hopes to increase this amount over time. Nichole now has about $15,000 in a bank savings account, which shes willing to use to kick off this program. In view of her investment objectives, she isnt interested in taking a lot of risk. Because her knowledge of investments extends no further than savings accounts, series EE bonds, and a little bit about mutual funds, she approaches you for some investment advice.

Let's help Nichole with investment plans.

1. Briefly discuss the difference between an electronically traded fund and a mutual fund.
2. Which would you recommend in this case (no textbook reference needed)?
3. What are the types of mutual funds or ETFs available; which would you recommend here?