标题: quiz: you are close to retirement.. [打印本页] 作者: Muddahudda 时间: 2011-7-11 19:32 标题: quiz: you are close to retirement..
Once an individual reaches the retirement stage of life, the main concern is:
A) safety of principal, with investment income being secondary.
B) reallocating financial assets to adopt a more conservative profile.
C) establishing a drawdown rate that will not result in their outliving their assets.作者: bboo 时间: 2011-7-11 19:32
Hint
for people chose C, please point out where it is on notes/book?
Could not find it...
Edited 1 time(s). Last edit at Sunday, May 22, 2011 at 05:39AM by hellscream.作者: PalacioHill 时间: 2011-7-11 19:32
This is in the chapter discussing human and financial capital - basically, there is no more financial capital to be earned, so therefore, establishing a drawdown rate is appropriate作者: Iginla2011 时间: 2011-7-11 19:32
Would go for B though C looks close as well.作者: pennyless 时间: 2011-7-11 19:32
stevenevans Wrote:
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> This is in the chapter discussing human and
> financial capital - basically, there is no more
> financial capital to be earned, so therefore,
> establishing a drawdown rate is appropriate
Yes, the answer is C, and I have read the chapter.
But why B is wrong? Even if no more human capital, they can still own financial capital from their existing portfolio.作者: Valores 时间: 2011-7-11 19:32
C - Longevity Risk, probably the risk individual clients in retirement fear the most.
