6. The process of selecting a mutual fund Jim, a 55-year-old lawyer, recently received $200,000 from the sale of his home. Although he has some other retirement money saved, his home was his primary investment and thus this money is essential to his plan to retire at age 65. The following statements represent the different things Jim must consider before choosing a mutual fund (not in the correct order). Complete each statement by choosing the appropriate words or phrases, and then indicate which step in the process of choosing a mutual fund it reflects. The Process of Selecting a Mutual Fund Jim is not interested in any specific fund types, nor is he willing to take on the risk associated with ______ funds. Step Jim’s goal is to invest the money such that it will provide a steady stream of income from the age 65 onward. He hopes for a return of 5–6%. Step Because he is nearing retirement, Jim should choose an investment __________ policy. Step After establishing his portfolio, Jim will __________ to monitor the performance of his funds. Step Jim is planning to invest a relatively large amount of money upon which he will be heavily dependent; therefore, he decides to seek out professional advice to be sure he is investing wisely. Step Jim uses Vanguard’s fund screener to compare past performance, ratings, and services of different funds that meet his basic objective criteria. Step Because he knows that funds with loads ________, he _______ funds with loads. Step
6. The process of selecting a mutual fund Jim, a 55-year-old lawyer, recently received $200,000 from the sale of his home. Although he has some other retirement money saved, his home was his primary investment and thus this money is essential to his plan to retire at age 65. The following statements represent the different things Jim must consider before choosing a mutual fund (not in the correct order). Complete each statement by choosing the appropriate words or phrases, and then indicate which step in the process of choosing a mutual fund it reflects. The Process of Selecting a Mutual Fund Jim is not interested in any specific fund types, nor is he willing to take on the risk associated with ______ funds. Step Jim’s goal is to invest the money such that it will provide a steady stream of income from the age 65 onward. He hopes for a return of 5–6%. Step Because he is nearing retirement, Jim should choose an investment __________ policy. Step After establishing his portfolio, Jim will __________ to monitor the performance of his funds. Step Jim is planning to invest a relatively large amount of money upon which he will be heavily dependent; therefore, he decides to seek out professional advice to be sure he is investing wisely. Step Jim uses Vanguard’s fund screener to compare past performance, ratings, and services of different funds that meet his basic objective criteria. Step Because he knows that funds with loads ________, he _______ funds with loads. Step
Chapter17: Retirement And Estate Planning
Section: Chapter Questions
Problem 5DTM
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6. The process of selecting a mutual fund
Jim, a 55-year-old lawyer, recently received $200,000 from the sale of his home. Although he has some other retirement money saved, his home was his primary investment and thus this money is essential to his plan to retire at age 65. The following statements represent the different things Jim must consider before choosing a mutual fund (not in the correct order). Complete each statement by choosing the appropriate words or phrases, and then indicate which step in the process of choosing a mutual fund it reflects.
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The Process of Selecting a Mutual Fund
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|
|---|---|
| Jim is not interested in any specific fund types, nor is he willing to take on the risk associated with ______ funds. | Step |
| Jim’s goal is to invest the money such that it will provide a steady stream of income from the age 65 onward. He hopes for a return of 5–6%. | Step |
| Because he is nearing retirement, Jim should choose an investment __________ policy. | Step |
| After establishing his portfolio, Jim will __________ to monitor the performance of his funds. | Step |
| Jim is planning to invest a relatively large amount of money upon which he will be heavily dependent; therefore, he decides to seek out professional advice to be sure he is investing wisely. | Step |
| Jim uses Vanguard’s fund screener to compare past performance, ratings, and services of different funds that meet his basic objective criteria. | Step |
| Because he knows that funds with loads ________, he _______ funds with loads. | Step |
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