Henrietta Marston plans to retire in the year 2050. She is considering a fund that will be more aggressive now and become more conservative as she approaches retirement. Which of the following funds would you recommend to her?

Question

Quizplus · Accepted Answer

A Lifecycle fund is designed to be more aggressive in the early years and gradually become more conservative as the investor approaches retirement. This means that it is well-suited for Henrietta Marston's retirement plans. Choice A, B, and C are not suitable because they do not provide a gradual shift from aggressive to conservative investing to match her retirement goals. A fund of funds may or may not be well-suited depending on its investment strategy, so it cannot be recommended without further information.

Henrietta Marston Plans to Retire in the Year 2050