Question

Choose one of the investment alternatives presented (stocks, bonds, mutual funds, real estate, or speculative investments) and prepare a report describing why this investment would be appropriate for a widow who is 68 years old that has just lost her husband. assume the woman is debt-free and has just inherited $175,000.

Answer 1

Bonds would be an appropriate investment choice for a 68-year-old widow who has just lost her husband and inherited $175,000. Bonds provide reduced risk and certainty about retirement income, making them suitable for someone near retirement age. They generate fixed annual returns and help preserve and grow wealth.

Step-by-step explanation:

For a 68-year-old widow who has just lost her husband and has inherited $175,000, investing in bonds would be an appropriate choice. Bonds are considered a safer investment compared to stocks or real estate, making them more suitable for someone seeking reduced risk and certainty about retirement income.

Bonds are essentially IOUs that generate interest and pay a fixed amount annually. They provide a steady stream of income for the investor. Since the investor is near retirement age and already owns a house, she may prioritize stability and consistent returns over higher-risk investments with fluctuating returns.

Investing in bonds can help preserve and grow the inherited wealth while minimizing the potential for significant losses.