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1. If you are saving for retirement you should never have risky investments in your portfolio....

1. If you are saving for retirement you should never have risky investments in your portfolio. True or False?

2. You have made the recommendation to a client to purchase an immediate annuity. This will convert a lump sum investment into periodic payments for a specified number of periods. The payment your client receives will depend on the interest rate offered by the insurance company and the number of periods over which the payments will be made. True or false?

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Answer #1

1. An ideal portfolio for retirement must consist of a healthy mix of safe as well as risky investments to meet the long term financial goals.

Hence, the statement is FALSE.

2. Annuity refers to periodic payments received in the future at a specified rate of interest.

Hence, the statement is TRUE.

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