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Jane is a 22-year-old college graduate. She has just started working at a job that pays her $75,000 per year. Since you have had an economics course, Jane asks you for advice on where to invest the money she is saving for her retirement. What do you recommend?
On Sep 23, 2024
History indicates that the stock market would be a good place for Jane to invest her funds. When a diverse set of stocks is held over a lengthy time period, historically, stocks have yielded a high rate of return, and the variation of that return has been relatively small. Stock mutual funds make it possible for small investors such as Jane to hold a diverse portfolio. Indexed equity funds are particularly attractive because they generally have low management and operating costs, and therefore, their fees are lower.