someone is retiring next year. what would be an appropriate amount of risk to take with their…
someone is retiring next year. what would be an appropriate amount of risk to take with their investments?\na. highest risk, highest growth\nb. medium risk, medium growth\nc. lower risk, lower growth\nd. no risk. just savings accounts.
Answer
Brief Explanation:
As the person is retiring next - year, they have a short - term investment horizon. High - risk investments may lead to significant losses close to retirement. Lower risk investments are more appropriate to preserve capital. While savings accounts have no risk, they may not provide enough growth to support retirement. Lower risk with lower growth is a more balanced approach for someone on the verge of retirement.
Answer:
C. Lower risk, lower growth