Question: This chapter explored a number of different classifications or types of mutual funds.
a. Based on your age and current financial situation, which type of mutual fund seems appropriate for your investment needs? Explain your answer.
b. As people get closer to retirement, their investment goals often change. Assume you are now 45 and have accumulated $110,000 in a retirement account. In this situation, what type of mutual funds would you choose? Why?
c. Assume you are now 60 years of age and have accumulated $400,000 in a retirement account. Also assume you would like to retire when you are 65. What type of mutual funds would you choose to help you reach your investment goals? Why?