NAF Case Studies

Plan Your Financial Life (National Academy Foundation)

Chapter 10: Investing Overseas – A Good Idea?

Mary and Brandon have been living very frugally. Mary is a teacher and Brandon works as an automotive technician. They only own one car. They live in a small one-bedroom apartment that is sparsely decorated. Mary and Brandon shop only at discount stores and use coupons whenever possible. Their penny-pinching habits have served them well – they have over $30,000 in savings. Mary and Brandon have been thinking about the investment opportunities that might allow their savings to really grow. A childhood friend of Mary’s sells mutual funds and has suggested Mary and her husband invest in international and aggressive growth funds.

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What do you think of the suggestion Mary’s friend has made? If you were Mary and Brandon’s friend, what would you advise they do with their $30,000? Why?