You’ve just graduated and taken a job with Al-Mart. Your benefits package includ
ID: 2806142 • Letter: Y
Question
You’ve just graduated and taken a job with Al-Mart. Your benefits package includes a 401(k). You have no idea how to invest your funds in the 401(k), so you decide to use the “default investment.” Which of the following mutual funds is most likely to be the default investment for a 21-year old college graduate? A. Vanguard Empire Balanced fund B. Fidelity 2060 Lifecycle Allocation fund C. American Funds Washington Fixed Income fund D. T. Rowe Price 2020 Asset Allocation fund As I know, Ans C is wrong
Explanation / Answer
Answer) The answer should be Option B) Life cycle Allocation Fund.
Finds asset allocation is adjusted from high risk to low risk allocation as per the age profile of the investor.
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