Three professors want to invest in retirement funds. They are all eligible for the plans offered by their univeristy. What type of retirement plans (pre-tax/post-tax) should they invest in? What should they look for in a provider? And what is the optimal asset for these individuals? Be detailed in your explaination.
a. Professor A has a specific retirement goal. She plans to retire at 55 and travel the world in comfort.
b. Professor B has saved $10,000 that he would like to invest for his children’s college education in fifteen years.
c. Professor C is a degenerate gambler. He has recently returned from Las Vegas with a suitcase full of cash. However, he is in a pickle because his card counting has now gotten him banned from even the sketchiest off-strip establishments. He wants to try trading financial securities as an alternative way of getting some action.