Personal Finance ©2012
Bonds and Mutual Funds
NAF Case Study
Plan Your Financial Life (National Academy Foundation)
Mary and Brandon have been living very frugally. Mary is a teacher and Brandon works as an automotive technician. They only own one car. They live in a small one-bedroom apartment that is sparsely decorated. Mary and Brandon shop only at discount stores and use coupons whenever possible. Their penny-pinching habits have served them well - they have over $30,000 in savings. Mary and Brandon have been thinking about the investment opportunities that might allow their savings to really grow. A childhood friend of Marys sells mutual funds and has suggested Mary and her husband invest in international and aggressive growth funds.
What do you think of the suggestion Marys friend has made? If you were Mary and Brandons friend, what would you advise they do with their $30,000? Why?