Group+3

Investment Examples

For each of the scenarios below determine which type of investment would be the best and explain why.
 * 1) Ruth and Charlie are in the late 50’s and plan to retire in another 10 to 15 years. Together they have about $3,000 a year that can be invested.

2. Tommy is 5 years old and his parents are trying to teach him about the importance of investing his money. He receives money at holidays and for his birthday and he parents want him to put half of it away in an account.

3. Jill (17) just started her first job and she is thinking about going to college after high school. She wants to earn a decent amount of interest, but still be able to get to her money when she goes to college.

4. Eric (23) has just graduated from college and is beginning his first career. He thinks he would have about $2,000 a year to put away for retirement.

5. Sarah and Jim are a married couple in their mid 30s. Both have stable jobs and their home is paid for. They would like to receive a high interest rate and are willing to take a great deal of risk with their investment.