American_Bankers_Association
CTFA · Question #4
Frank, age 55, is considering adopting a lifestyle investment technique as he aims to build up his personal pension prior to retirement. He should be aware that:
The correct answer is A. The asset mix of the fund will be adjusted automatically on pre-determined dates B. His ongoing exposure to equities will reduce with lifestyling D. Lifestyling is likely to be appropriate if he intends to purchase a conventional annuity with his. See the full explanation below for the reasoning.
Investment Management
Question
Frank, age 55, is considering adopting a lifestyle investment technique as he aims to build up his personal pension prior to retirement. He should be aware that:
Options
- AThe asset mix of the fund will be adjusted automatically on pre-determined dates
- BHis ongoing exposure to equities will reduce with lifestyling
- CAfter 10 years, a maximum of 25% of the investments will be in bonds
- DLifestyling is likely to be appropriate if he intends to purchase a conventional annuity with his
How the community answered
(23 responses)- A70% (16)
- C30% (7)
Topics
#lifestyle investment#pension fund#asset allocation#annuity purchase
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