Last month Nellie Jacobson's divorce became final. As part of the settlement, she received $150,000. She would like to invest in mutual funds, but since she is 62 years old, she is concerned with the safety of her "nest egg." Which of the following mutual funds would you recommend?

Question

Quizplus · Accepted Answer

Since Nellie is concerned with the safety of her investment, a short-term U.S. bond fund would be the best choice. This type of mutual fund typically invests in high-quality, short-term debt securities issued by the U.S. government, which are considered a safer investment than stocks or high-yield bonds. Additionally, the short-term nature of the securities means lower interest rate risk.

Last Month Nellie Jacobson's Divorce Became Final