You have $10 000 to invest now and can add $550 a month, have a moderate risk profile, and would like to set these funds aside for retirement in 20 years. You should

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Quizplus · Accepted Answer

The best option for the given scenario is to invest in mutual funds managed by the asset allocation method. This is because the investor has a moderate risk profile and a long-term investment horizon of 20 years. Mutual funds provide diversification across different asset classes, which helps to reduce risk. Additionally, asset allocation funds are designed to automatically adjust the portfolio mix based on the changing market conditions, which can lead to a better risk-adjusted return over the long run. Finally, regular contributions of $550 a month can help to dollar-cost average into the market and reduce the impact of market volatility.

You Have $10 000 to Invest Now and Can Add