11. zoe has $5,000 to invest. when assessing her goals, she decides that she wants to create a low - risk…

11. zoe has $5,000 to invest. when assessing her goals, she decides that she wants to create a low - risk, low - volatility portfolio. based on this assessment, a good strategy for zoe would be: lump sum investing after tax averaging dollar - cost averaging average paycheck investing 12. ash remembers learning about both 401(k)s and iras in his personal finance class during high school. hes early in his career, and he can really only afford to fund one type of account with about $100 per month right now. what should he do? fund a 401(k) because his employer is offering a match, up to 3% of his salary fund a traditional ira, because it will offer him, by far, the best tax advantages fund neither account, because $100 does not meet the minimum requirements for any retirement account type fund a savings account, because it will guarantee an interest rate, rather than leaving his retirement up to a risky investment option

11. zoe has $5,000 to invest. when assessing her goals, she decides that she wants to create a low - risk, low - volatility portfolio. based on this assessment, a good strategy for zoe would be: lump sum investing after tax averaging dollar - cost averaging average paycheck investing 12. ash remembers learning about both 401(k)s and iras in his personal finance class during high school. hes early in his career, and he can really only afford to fund one type of account with about $100 per month right now. what should he do? fund a 401(k) because his employer is offering a match, up to 3% of his salary fund a traditional ira, because it will offer him, by far, the best tax advantages fund neither account, because $100 does not meet the minimum requirements for any retirement account type fund a savings account, because it will guarantee an interest rate, rather than leaving his retirement up to a risky investment option

Answer

Brief Explanations:

  1. Dollar - Cost Averaging involves investing a fixed amount of money at regular intervals. This helps in reducing the impact of market volatility and is suitable for a low - risk, low - volatility portfolio. Lump Sum Investing exposes the entire amount to market risk at once. After Tax Averaging and Average Paycheck Investing are not standard low - risk, low - volatility investment strategies in this context.
  2. When an employer offers a match for a 401(k) plan, it's essentially free money. Even with a small monthly contribution like $100, taking advantage of the employer match is a smart financial move. Traditional IRAs may have tax advantages, but the employer match in a 401(k) is a significant benefit. $100 can be contributed to many retirement accounts, and a savings account typically has lower long - term returns compared to retirement investment accounts.

Answer:

  1. Dollar-Cost Averaging
  2. Fund a 401(k) because his employer is offering a match, up to 3% of his salary