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Mabuso, aged 25, advises that he needs assistance setting up an endowment. After discussing the matter with him, you gather from the conversation that Mabuso

Mabuso, aged 25, advises that he needs assistance setting up an endowment. After discussing the matter with him, you gather from the conversation that Mabuso is keen to take up an endowment as a result of a friend, who believes in endowments, convinced him of the benefits. Mabuso wants to save up for a holiday in Dubai in the next 4 6 years. Mabuso is set on endowment as the only option. Mabuso estimates that he should save approximately R50 000 for the trip. He would like the ability to regularly contribute depending on his monthly budget, which differs, as he works on commission, which fluctuates on a monthly basis. He mentions that he is looking after his younger brother, aged 17. Choose the correct statement.

a. An endowment is not necessarily a suited product for Mabuso based on information provided and the objective of the investment.
b. An endowment is the best option for Mabuso based on the fact that he only intends on going on holiday in 4 6 years, providing him with sufficient time to contribute.
c. An endowment is not a suitable option as the maturity amount can only be paid after a period of 5 years.
d. An endowment is a suitable product as Mabuso will be able to contribute based on his changing commission.
e. None of the above

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