Question
Jake wants his investments to earn $1,000,000 by the time he retires at age 65. He is personally VERY averse to risk and is interested
Jake wants his investments to earn $1,000,000 by the time he retires at age 65. He is personally VERY averse to risk and is interested only in U.S. Treasury securities and A-rated Corporate Bonds.
1. Respond to Jakes stance on risk.
2. Is it possible for him to achieve his investment goals with the amount of risk he is willing to take?
3. Devise a short recommendation to your client list 4 investments which correspond to Jakes risk tolerance then compare and contrast them with 4 investments which are appropriate for him at the accumulation phase of the investor life cycle.
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