Read the situation and answer the questions that follow.

Imagine that a friend asks you for investment advice. He has $10,000 to invest and he has about 35 years before he will be ready for his financial goal of early retirement.

What type of investment would you recommended to your friend? Why?
What other investing advice would you give him to help him achieve his financial goals?

Question

Answered

Verified Answer :

metchelle metchelle · Answer 1 · 2016-08-31T13:16:45-04:00

The type of investment that I would recommend to my friend would be mutual funds because it's good for long term goals such as retirement. Mutual funds are more convenient because it allows my friend's money for $10,000 to be invested in different avenues such as stocks, bonds, money market and others. The fund manager's goal is get capital gains and income for the investor or in this case, my friend.
2. He can also invest his money by buying life insurances that can include health protection. He can also buy a house or a condominium and have it rented. Insurances nowadays give you the option to withdraw your invested money and as for the real estate investment, even if you retire, you can additional income.