professional money management. He believes they should invest in a growth stock fund in order, for example, to save toward the $10,000 down payment on the new home. Once they have achieved that goal, approximately 85%, or $8,500, of that money should be moved into a money market fund as a way to protect it from the volatility of the stock market. Any savings they have can then be added to the remaining $1,500 in the growth fund in order to grow capital for their next financial goal. To build their portfolio, the Simpkinses should also invest in a mutual fund that has, among its core holdings, a good mix of such large-cap stocks as Home Depot (NYSE: HD), America Online (NSYE: AOL) and Microsoft (Nasdaq: MSFT), instead of investing in individual stocks on their own.
Kevin and Nicole Simpkins
Life Insurance (cash value): $120,000
Credit Cards: $7,000
Student Loans: $19,500
Personal Loans: $3,000
NET WORTH (ASSETS-LIABILITIES): $96,200