Question

A married couple filing a joint tax return with combined income under $40,000 both contribute to their self-directed IRAs. Which of the following investments would be most suitable? (A) an oil and gas limited partnership (B) common stock of a blue chip corporation (C) options (D) growth mutual funds

Answer 1

Answer:

The answer is: D) growth mutual funds

Explanation:

Since the couple doesn't have that much money to invest and they probably can't afford high investment risks, my best advice would be to invest in mutual funds. Mutual funds provide diversified investments which are generally low risk and long term.