Question

(a) What can you suggest to Lucia about figuring out her investment philosophy?
(b) Would you recommend active or passive investing for her, and why?
(c) Should Lucia be a lender or owner?
(d) Identify three risks to her retirement investments that Lucia should try to avoid, and explain how she can avoid them.
(e) Select two of the four recommended investment strategies to recommend to Lucia, and explain why she should follow them.
(f) If Lucia ’s $50,000 is invested in a standard investment account and her $1000 monthly is invested in a tax-sheltered account, with each account growing at 5 percent annually for 25 percent in 25 years, how much money will she have accumulated in each account?

Lucia Gomez, a flight attendant from Indiana, Pennsylvania, is thinking about jump-starting a retirement savings plan by investing the $50,000 gift that her elderly uncle gave her. She also wants to invest $1000 a month for the next 25 years for retirement. Lucia knows little about investments and does not seem to have a big desire to learn.



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  • CreatedNovember 26, 2014
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