Question

A young customer who is a novice investor wishes to begin an investment program. He is eligible for his employer's 401(k) plan, to which the employer makes matching contributions, but he does not participate in the plan. Your advice to the customer should be to begin A) by making regular contributions to an income mutual fund B) by taking positions in individual stocks C) by making regular contributions to a growth mutual fund D) making payroll deduction contributions to the employer's 401(k) plan at least to the employer's matching level

Answer 1

Answer:

The answer is "Option D"

Explanation:

The first bit of wisdom can offer a consumer qualifying for a 401(k) program is to make regular donations to the program, especially when the business provides employee benefits, therefore the correct choice is to make direct payment donations to the 401(k) plan of both the employee at minimum to just the contributing amount of the employee.