Mike is in his late 60's and retired.He wants to maintain a portfolio of investments that will provide him a stable income.Which of the following financial instruments is the most suitable option for Mike?

Question

Quizplus · Accepted Answer

Bonds are a suitable option for someone like Mike who wants to maintain a stable income from investments. Bonds are fixed-income securities that pay periodic interest to the investors, and the principal is returned at maturity. Bond investments generally carry a lower risk than stocks, and their fixed income can provide a stable source of income for investors like Mike. Loans, mortgages, money market securities, and stocks are relatively risky investments that may not provide a stable income for retired investors looking for income.

Mike Is in His Late 60's and Retired