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Imagine you inherited $50,000 and you want to invest it to meet two financial goals: to save for your wedding which you plan to have in two years; and to save for your retirement several decades from now. How would you invest the money? Explain your answer.

Respuesta :

I would invest the money needed for the wedding in bonds.

I would invest the money needed for retirement in alternative investments and stocks.

How would I invest the money?

The money needed for the wedding is needed in the near future (two years from now), thus, the suitable investment should be a short-term investment. The short-term investment should be in less risky and liquid assets.

Retirement is still a long way ahead. Thus, the investment would be classfiied as a long-term investment. Long term investment can be invested in risky and less liquid assets such as alternative assets and stocks.

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