Question: It has been about 20 years since Julia graduated with
It has been about 20 years since Julia graduated with a major in aeronautical engineering, and she has been quite successful in her career and her personal finances. Accordingly she wants to sell her home and buy a luxury condominium. She has $40,000 in savings, and she figures that she can continue her savings and investment program for three more years before making a 20 percent down payment on a luxury condominium. The home that she wants to purchase is currently priced at $450,000. Julia thinks she should invest her $40,000 and additional savings during the next three years by using lending investments like certificates of deposit and bonds rather than owning stocks or stock mutual funds. Offer your opinions about her thinking.
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