26 Flashcards
1
Q
investments for VERY AGGRESSIVE investors
A
ipo’s; precious metals; real estate; OTC securities
2
Q
life cycle hypothesis: mid-earnings years
A
35-55; investment objectives - growth and tax minimization
3
Q
life cycle hypothesis: early-earnings years
A
up to 35; prioritize savings plan and near-cash nest-egg for emergencies; when funds are available invest in growth
4
Q
life cycle hypothesis: peak-earnings years
A
55-retirement; prioritize preservation of capital; term of maturity of FI portfolio should be reduced and high-risk common share portfolio weight reduced
5
Q
life cycle hypothesis: retirement years
A
prioritize preservation of capital and income; enough growth only to help ensure client doesn’t run out of $
