Reverend Mark Thomas Ponders Mutual Funds

Reverend Mark Thomas Ponders Mutual Funds
The Reverend Mark Thomas is the minister of a church in the San Diego area. He is married had one young child and earns a modest income. Because religious organizations are not notorious for their generous retirement programs the reverend has decided he should do some investment on his own. He would like to set up a program that enables him to supplement the churchs retirement program and the same time provide some funds for his childs college education (which is still some 12 years away). He is not out to break any investment records but wants some backup to provide for the long run needs of his family.
Although he has a modest income Mark Thomas believes that with careful planning he can probably invest about $250 a quarter (and with luck increase this amount over time). He currently has about $15000 in savings account that he would be willing to use to begin this program. In view of his investment objectives he is not interested in taking a lot of risk. Because his knowledge of investments extends to savings account Series EE savings bonds and a little bit about mutual funds he approaches you for some investment advice.
Questions:
1. In light of Marks long term investment goals do you think mutual funds are an appropriate investment vehicle for him?
2. Do you think he should use his $15000 savings to start a mutual fund investment program?
3. What type of mutual investment program would you set up for the reverend? Include in your answer some discussion of the types of funds you would consider the investment objectives you would set and any investment services (e.g. withdrawal plans) you would seek. Would taxes be an important consideration in your investment advice? Explain.