Question

An investor set up his own IRA several years ago and has now decided to get professional advice from an investment adviser. When the investor meets with the investment adviser, he tells the adviser that he has positions in common stock, an index fund, TIPs bonds, a municipal bond fund, and a small amount of cash. Which of these investments should the investment adviser immediately be most concerned about

Answer 1

Answer:

Municipal bond fund

Explanation:

He should be most concerned about this fund because these investments are in the investors IRA, the investment aadviser should be immediately concerned about the municipal bond fund investment.

We have seen that this is a tax deferred account, so a tax free investment is not going to be suitable.