Question

1. analyze the following scenarios and place an \x\ next to what type of investment account would be best for each person:

a. ava is a recent college graduate. she realized she has some extra money in her budget and would like a way to invest it while also having access to it should she need cash.

brokerage account \t\t retirement account

b. remi contributes as much as he can to his employee - sponsored 401k and personal ira. he would like to make more investments in individual companies to try and increase his long - term earnings.

brokerage account \t\t retirement account

c. naomi would like to invest for retirement but doesnt want to worry about paying taxes every year.

brokerage account \t\t retirement account

d. ira is ready to take on some more risky investments and would like to start exploring options trading.

Explanation:

Part a

A brokerage account offers liquidity (access to funds) while allowing investment, which matches Ava's need for accessible investment. Retirement accounts are less liquid and for long - term retirement savings, not for quick access.

Brokerage accounts allow investing in individual companies (like stocks of specific firms) for long - term growth, which fits Remi's goal. Retirement accounts (401k, IRA) are already maxed by him, and he wants additional investments in individual companies, so a brokerage account is suitable.

Retirement accounts (e.g., IRA, 401k) often have tax advantages like tax - deferred or tax - free growth, and taxes are not paid yearly on earnings in the same way as brokerage accounts. This matches Naomi's desire to invest for retirement without yearly tax worries.

Answer:

[X] Brokerage Account
[ ] Retirement Account

Part b