A substantial and permanent investment in money market mutual funds would generally be inappropriate for a 25-year-old with a traditional IRA invested for his/her retirement. Therefore, the option B holds true.
An investment can be referred to or considered as a method of engaging monies of an individual into different classes of assets, wherein the primary intention of the individual is to foresee an appreciation in value of the amount that he or she invests. An investment is typically backed by a goal. A 25-year-old must avoid investments in money market funds, if he or she has a goal of saving money for retirements in his IRA account. This is because, it involves a higher amount of risk of losing money.
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