Geoff recently graduated from a state university with a degree in art history. He has no student loans and has saved $7,000 toward retirement while in school. He's heard rumors about the stock market being unstable right now, and he has friends his age who have seen their investment accounts go down in value. Geoff has decided to keep his money in a savings account until mutual fund returns look better; then he will invest the money. 2 3 Did Geoff make a good decision to keep his money in a savings account until the market goes back up? Why or why not? If he did put his money in the stock market instead of a savings account, should he leave it alone or take it out when the market goes down? Explain your answer. For long-term savings, what is the better option: Keep your money in a savings account or invest it into the stock market? Why? If Geoff came to you for advice about his money situation, what would you tell him?
Geoff recently graduated from a state university with a degree in art history. He has no student loans and has saved $7,000 toward retirement while in school. He's heard rumors about the stock market being unstable right now, and he has friends his age who have seen their investment accounts go down in value. Geoff has decided to keep his money in a savings account until mutual fund returns look better; then he will invest the money. 2 3 Did Geoff make a good decision to keep his money in a savings account until the market goes back up? Why or why not? If he did put his money in the stock market instead of a savings account, should he leave it alone or take it out when the market goes down? Explain your answer. For long-term savings, what is the better option: Keep your money in a savings account or invest it into the stock market? Why? If Geoff came to you for advice about his money situation, what would you tell him?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Geoff recently graduated from a state university with a degree
in art history. He has no student loans and has saved $7,000
toward retirement while in school. He's heard rumors about the
stock market being unstable right now, and he has friends his
age who have seen their investment accounts go down in value.
Geoff has decided to keep his money in a savings account until
mutual fund returns look better; then he will invest the money.
1
2
3
4
Did Geoff make a good decision to keep his money in a
savings account until the market goes back up? Why or
why not?
If he did put his money in the stock market instead of a
savings account, should he leave it alone or take it out
when the market goes down? Explain your answer.
For long-term savings, what is the better option: Keep
your money in a savings account or invest it into the
stock market? Why?
If Geoff came to you for advice about his money situation,
what would you tell him?
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Step 1: Write a short note on retirement planning
VIEWStep 2: 1. Comment on Goeff's decision to keep their money in a savings account
VIEWStep 3: 2. If invested in the markets, should he stay invested or take it out when market goes down
VIEWStep 4: 3. Which out of savings or stock markets is a better investment option in the long-term
VIEWStep 5: 4. Advice Goeff on his money situation
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