Since Mike and Carol are nearing retirement age, they are concerned with the need for their investments to provide income. If you were a financial planner, which of the following would you not recommend to Mike and Carol as an investment?
A) Blue-chip stocks known for paying dividends
B) Stocks of high-growth companies
C) Corporate bonds
D) Government bonds
E) Certificates of deposit

Question

Quizplus · Accepted Answer

Stocks of high-growth companies are generally not recommended for investors who are nearing retirement age and seeking stable income from their investments since they are typically more volatile and risky. A better option for income-seeking investors would be blue-chip stocks known for paying dividends, corporate bonds, government bonds, or certificates of deposit.

Since Mike and Carol Are Nearing Retirement Age, They Are