You are starting an investment program for retirement. Your grand-aunt has given you $20,000 to start. Using your current age and income, choose a portfolio of at least four mutual funds. How far away from retirement are you? (If you are already retired, please consider this amount for current income or a growing stream of income.) Using the mutual funds at your disposal, how much would you allocate to each mutual fund from the lump sum that your aunt left you? How much will you contribute each month and how much would you allocate to each mutual fund from your monthly contribution? Explain the reasons you made your choices.

Personal Finance
13th Edition
ISBN:9781337669214
Author:GARMAN
Publisher:GARMAN
Chapter15: Mutual And Exchange Traded Funds
Section: Chapter Questions
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Business 123 Introduction to Investment

May I please have the solution for the following question?

With S&P 500 Index fund, Long-term mutual fund, Global Mutual fund, and European mutual fund as my disposal choices.

Thank you,

You are starting an investment program for retirement. Your grand-aunt has given you $20,000 to start. Using your current age and income, choose a portfolio
of at least four mutual funds. How far away from retirement are you? (If you are already retired, please consider this amount for current income or a growing
stream of income.) Using the mutual funds at your disposal, how much would you allocate to each mutual fund from the lump sum that your aunt left you?
How much will you contribute each month and how much would you allocate to each mutual fund from your monthly contribution? Explain the reasons you
made your choices.
Transcribed Image Text:You are starting an investment program for retirement. Your grand-aunt has given you $20,000 to start. Using your current age and income, choose a portfolio of at least four mutual funds. How far away from retirement are you? (If you are already retired, please consider this amount for current income or a growing stream of income.) Using the mutual funds at your disposal, how much would you allocate to each mutual fund from the lump sum that your aunt left you? How much will you contribute each month and how much would you allocate to each mutual fund from your monthly contribution? Explain the reasons you made your choices.
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